Russia's Federal Security Service (FSB) and Interior Ministry shut down nine unregistered cryptocurrency exchanges in Moscow City on August 7, 2026, detaining over 20 people. The exchanges allegedly laundered money stolen from Russian citizens by Ukraine-based phone scammers. Young couriers collected cash from victims to convert into crypto, with one exchange reportedly processing up to $2 million daily. The suspects face up to ten years in prison under large-scale fraud charges.
Moscow crypto exchange raids
- ▪Russian law enforcement agents detained more than 20 employees and couriers during the August 7, 2026 raids at the Moscow International Business Center.
- ▪Russia's Federal Security Service and Interior Ministry raided and shut down nine unregistered cryptocurrency exchange offices in the Moscow City financial district on August 7, 2026.
Ukraine-linked phone fraud scheme
- ▪The targeted cryptocurrency exchanges allegedly converted stolen funds into digital assets to funnel them to accounts controlled by Ukraine-based phone scam operators.
- ▪The underlying fraud scheme involved callers posing as Russian Federal Security Service or Rosfinmonitoring officers to panic victims into transferring their savings to "safe accounts."
Money laundering mechanics
- ▪The fraud ring recruited young people aged 18 to 25 from Russian regions to act as couriers, collecting physical cash from victims and delivering it to the Moscow City exchanges.
- ▪An individual arrested during the raids claimed in an FSB-released video that up to $2 million was laundered through a single exchange office in a single day.
Criminal fraud charges
- ▪Russia's Interior Ministry initiated a criminal investigation under Part 4 of Article 159 of the Criminal Code, which addresses organized or exceptionally large-scale fraud.
- ▪Several detained suspects claimed on camera that they believed they were working as undercover informants for the FSB or Russia's financial intelligence agency, Rosfinmonitoring.
Maximum ten-year sentences
- ▪Under Russia's crypto law, basic violations for facilitating unregistered transactions carry fines of up to $4,000 and prison terms of up to four years.
- ▪The large-scale fraud charges initiated by the Russian Interior Ministry carry a maximum penalty of up to ten years of imprisonment.
Russian crypto regulation context
- ▪The Moscow City raids occurred shortly after Russian President Vladimir Putin signed a comprehensive cryptocurrency regulation law on August 4, 2026, set to take effect on September 1, 2026.
- ▪The August 7, 2026 raid marks the second enforcement action in Moscow City within eight days, following a July 31, 2026 raid in the Federation Tower that resulted in eight arrests.
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