Russian authorities have detained more than 20 people after coordinated raids on nine unregistered cryptocurrency exchange services in Moscow’s business district, the Federal Security Service (FSB) announced on August 7. The operation, carried out jointly with the Interior Ministry, targeted exchange points allegedly used to convert proceeds from large-scale telephone fraud into cryptocurrency and move the funds to wallets controlled by Ukrainian coordinators.
According to the FSB, victims remained in constant contact with scammers who gave step-by-step instructions, leading many to physical exchange locations where cash was converted into digital assets without the victims understanding the nature of the transactions. Exchange employees and couriers, some recruited remotely from various Russian regions with promises of easy earnings despite lacking financial expertise, now face criminal charges under Part 4 of Article 159 of Russia’s Criminal Code — fraud on an especially large scale, carrying penalties of up to 10 years in prison.
The raids come less than a week after President Vladimir Putin signed Russia’s new digital asset framework into law. Scheduled to take effect on September 1, the legislation establishes a regulated infrastructure for cryptocurrency trading, including licensed exchange organizations, digital depositories, mandatory government registration, and minimum capital requirements. Retail investors will be able to purchase approved liquid cryptocurrencies through intermediaries after passing a suitability test, subject to annual limits, while domestic payments in crypto remain banned but cross-border settlements are permitted under defined conditions. The Bank of Russia is also preparing additional rules for exchanges, organized trading, and investor protection.
Authorities stressed that the August 7 arrests are not direct enforcement of the new licensing regime, which has a transition period, but rather a separate fraud investigation. However, the operation underscores the type of cash-to-crypto activity likely to face intensified scrutiny as the regulated market develops. The FSB warned that any caller claiming to represent a bank, regulator, or law enforcement agency and instructing someone to withdraw savings, buy cryptocurrency such as Bitcoin or USDT, and send it to a specified wallet is almost certainly a scammer. The case highlights growing enforcement pressure at the point where traditional money enters the digital-asset market, alongside broader government measures including mining restrictions in Moscow, the Moscow Region, and parts of Kursk lasting through 2032.
