Russian authorities have detained more than 20 individuals following coordinated raids on nine unregistered cryptocurrency exchange services operating in Moscow, as the country intensifies oversight of its digital asset sector ahead of new crypto regulations.
According to Russia’s Federal Security Service (FSB), the operation was carried out alongside the Interior Ministry and targeted exchange offices allegedly involved in laundering proceeds from large-scale telephone scams. Authorities claim the exchanges converted stolen funds into cryptocurrency before transferring the assets to wallets controlled by coordinators based in Ukraine.
The raids took place at Moscow International Business Center, commonly known as Moscow City, a major hub for over-the-counter cryptocurrency transactions in Russia. Investigators allege the exchange services were part of a wider network used to move illicit funds outside the country through crypto transactions.
Russian officials said exchange employees and cash couriers are being investigated for their alleged involvement in large-scale fraud. Authorities claim victims, including elderly citizens, were persuaded by phone scammers to hand over cash, which was later converted into digital assets at the unregistered exchange offices before being transferred abroad. Those convicted could face prison sentences of up to 10 years under Russian law.
The enforcement action comes just weeks before Russia’s newly approved cryptocurrency market framework is scheduled to take effect on Sept. 1. The legislation establishes the country’s first comprehensive regulatory structure for crypto exchanges, digital asset custodians and other market participants, while maintaining the ban on using cryptocurrencies as a domestic payment method.
Russian regulators have been increasing scrutiny of informal crypto exchange businesses over the past year as the government transitions toward a regulated digital asset market. Under the new framework, crypto service providers will be required to operate under licensing and oversight requirements established by the Bank of Russia.
The latest operation highlights authorities’ efforts to dismantle unregistered crypto businesses allegedly linked to financial crime while directing digital asset activity toward licensed platforms. It also reflects a broader global trend of regulators tightening oversight of cryptocurrency exchanges as governments introduce more comprehensive compliance standards for the industry.
