Russia has reportedly launched a crackdown on illegal crypto exchanges, with officers raiding “dozens of addresses” in Saint Petersburg and beyond.
Per the Russian media outlets 47news and 78.ru, officers swooped on addresses in “14 different areas.”
They claim that police have arrested or cautioned “over 90 people” in raids. The Economic Security Department of the Ministry of Internal Affairs also reportedly took part in the operation.
Illegal Crypto Exchanges: Based Near Saint Petersburg?
The exchanges in question appear may be part of a wider network. They also may be connected to a money laundering ring. 47News explained:
“The scale of the [police operation] can be understood by the degree of organization involved.”
The media outlet explained that “hundreds” of Moscow-based Russian Ministry of Internal Affairs officials, local police officers, and Criminal Investigation Department agents met at 4 am on October 2.
They then reportedly began “rolling raids” on addresses at 6-7 am the same day. The police officers then “divided into dozens of groups, after which each senior member of the group received a sealed package with a search warrant enclosed,” 47News wrote.
No Legal Status
Crypto exchanges have no legal status in Russia, but the government suspects many companies of helping Russians smuggle money out of the country.
They think that firms are using crypto as a remittance tool for illegal cross-border currency transfers.
The media outlets say that the exchanges’ masterminds are being charged with organized crime, illegal banking activities, and illegal circulation of payment instruments-related offenses.
Security forces are reportedly investigating a residential house in the village of Lisiy Nos, in the Primorsky District of Saint Petersburg.
Russian natural gas output rises almost 9% during the first nine months of this year, putting it on track to meet a government target but still far short of levels before the invasion of Ukraine https://t.co/s4Gl3weeCI
— Bloomberg Markets (@markets) October 2, 2024
The Ministry of Internal Affairs appears to believe that this is the home of the “organizer” of a “crypto-for-cash” operation.
In late September, ministry officials in Moscow raided a travel agency they suspect of acting as a front for a $2.2 million cross-border crypto exchange.
Two Russian Nationals Charged in Connection with Operating Billion Dollar Money Laundering Services
Justice Department Seizes Web Domains for Multiple Illicit Crypto Exchanges: https://t.co/GgBIR6Jeo1 pic.twitter.com/SRqOlejCs4
— Criminal Division (@DOJCrimDiv) September 26, 2024
In the United States, Justice Department officials seized control of suspected crypto exchange domains. They also arrested two Russian nationals, charging them with money laundering-related offenses.
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