Russia seizes nine crypto exchanges in Moscow for fraud

Russia’s security services have shut down nine unregistered cryptocurrency exchanges operating in Moscow, accusing them of laundering fraud proceeds through call centers in Ukraine.

Officials from the FSB said the exchanges processed transactions linked to online scams, funneling stolen funds out of Russia via shell companies registered abroad. The crackdown follows a pattern of tighter controls on digital assets in Russia, where authorities have long treated crypto as a high-risk tool for illicit finance. New rules in 2024 require all crypto platforms to register with the central bank or face shutdowns. Moscow has become a regional hub for crypto trading despite sanctions, with many exchanges operating in legal gray areas to serve Russian clients cut off from global systems.

The FSB named the targeted platforms but did not release transaction volumes or specific fraud cases. Earlier this year, Russian authorities froze assets worth more than $10 million tied to crypto-linked cybercrime rings. Analysts say the move reflects a broader effort to curb financial crime ahead of next year’s presidential election, when authorities want to project stability and compliance. The central bank has warned that unregulated crypto activity could undermine financial stability, especially as sanctions squeeze traditional banking channels.

The closures signal a shift toward stricter enforcement, but gaps remain. Many Russians still use VPNs and offshore platforms to trade crypto outside official oversight. The FSB is expected to continue targeting operators that skirt registration rules, while exchanges that comply face lighter scrutiny. For users, the crackdown could mean fewer local options and higher compliance costs. It also underscores Russia’s balancing act—tightening control over digital finance while trying to attract tech-driven investment in a shrinking economy.