Russia: Saint Petersburg Police Begin Crackdown on ‘Illegal Crypto Exchanges’

Author

Tim Alper

Author

Tim Alper

About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

Author Profile

Share

Copied

Last updated: 

October 3, 2024

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

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.

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.

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.