Russian Police Shut Down $2.2M ‘Cross-Border Crypto Exchange’

The video also shows officers questioning a male staff member, and asking what the business had been doing. The staff member replies:

“We didn’t do anything. We conducted crypto exchange transactions. And nothing else.”

The ministry said it also searched other offices and private apartments, where it seized “cash in various currencies,” as well as “communication devices, documents, and other items.”

Officers said they had charged a suspected “ringleader” ahead of a prosecution investigation.

Police said their own investigation was still ongoing as they attempted to identify more “accomplices.”

Officers added that the main service the “exchange” provided consisted of allowing Russians to “withdraw funds” from outside the country.

They claimed that the group essentially used crypto as a remittance tool.

Source: Ministry of Internal Affairs, Russia/Telegram/Screenshot

Multiple Exchanges Active in Moscow?

In March 2023, multiple reports surfaced claiming Russians were using “several” Moscow crypto exchanges to send the stablecoin Tether (USDT) to people based in the UK.

The reports claimed these exchanges are “offering services” that let Russians “withdraw cash funds” in the UK.

Source: Ministry of Internal Affairs, Russia/Telegram/Screenshot

In May this year, the Russian Central Bank said it had detected a sharp rise in citizens’ transactions on crypto exchanges and peer-to-peer trading platforms.

Crypto exchanges currently have no legal status in Russia. However, Russian law contains multiple stipulations about cross-border fiat currency transfer.

Many have accused unofficial exchanges of flaunting these laws under the guise of providing crypto investment services.