Russia closes 9 unregistered cryptocurrency exchanges in Moscow, FSB says involved in money laundering of fraud funds

The Federal Security Service of the Russian Federation (FSB) conducted raids on 9 unregistered cryptocurrency trading service providers in Moscow, claiming they were suspected of transferring funds obtained from fraud abroad through cryptocurrency assets, and detained more than 20 employees at the Moscow International Business Center.

The FSB stated that these exchanges converted stolen funds from Russian telephone scam victims into cryptocurrency and transferred them to accounts they referred to as Ukrainian processing parties. The operation was carried out jointly by the FSB and the Russian Ministry of Internal Affairs. The Russian Ministry of Internal Affairs has initiated a criminal investigation into large-scale fraud, which under Russian law can carry a maximum sentence of 10 years in prison. The FSB stated that it is continuing to identify victims and assess potential compensation.