Moscow, Saturday, October 4, 2024-Russian police launched a large-scale operation targeting illegal crypto exchanges in Saint Petersburg, conducting raids on multiple addresses across the city yesterday.
The crackdown, led by the Ministry of Internal Affairs and supported by local law enforcement, resulted in over 90 people being arrested or cautioned.
Authorities suspect that the exchanges were linked to organized crime and money laundering activities, using cryptocurrencies to transfer funds out of Russia illegally. The raids began early on October 2, with officers searching addresses in 14 areas, aiming to dismantle a vast network involved in unauthorized financial transactions.
The exchanges allegedly helped facilitate cross-border currency transfers, and authorities believe they operated without legal status. The police are investigating a house in Lisiy Nos, a village in the Primorsky District of Saint Petersburg, which is suspected to be the base of operations for the illegal crypto-for-cash exchange. Russian officials continue to crack down on crypto-related offenses, with similar actions in Moscow targeting companies suspected of using cryptocurrencies for illicit financial activities.
Crypto exchanges in Russia operate in a legal grey area. Although the government has not fully legalized or regulated cryptocurrency exchanges, many platforms continue to function. Authorities have expressed concerns about their use in illegal cross-border transactions and money laundering. In September 2024, a travel agency in Moscow was raided on suspicion of acting as a front for a $2.2 million crypto exchange. Internationally, the United States has also been active in seizing crypto domains and arresting Russian nationals involved in laundering through cryptocurrencies.
