Most of the money stolen by Russian cybercriminals ends up exchanged to cryptocurrencies, according to a representative of a public institution consulting the government in Moscow on new laws and regulations.
Law enforcement should be able to confiscate digital coins, despite the absence of legislation clearly defining the matter, Evgeny Masharov, member of the Commission for Public Review of Bills and Regulatory Acts, insisted, adding to the impetus for adopting a comprehensive framework for digital assets.
Russian fraudsters favor converting funds into cryptocurrency
The largest portion of the funds illicitly obtained by those involved in cybercrime gets laundered through conversion into cryptocurrency.
That’s according to Evgeny Masharov, member of the Commission for Public Review of Bills and Regulatory Acts at the Civic Chamber of the Russian Federation. The consultative body is an institution of Russia’s civil society.
Speaking to the TASS news agency, the advisor remarked that despite the reported surge in schemes involving sales and rentals of homes, cars and other property, telephone fraud remains the most popular means of theft among scammers.
Masharov further highlighted:
He also noted that judging by the appeals received by the Chamber, the measures introduced by the authorities, including the establishment of criminal liability for “droppers,” or money mules in Russian slang, are forcing fraudsters to use more insidious methods and recruit more people.
Criminal groups have started posting ads to hire “couriers” to whom victims transfer their funds. The organizers of the schemes then exchange the fiat money through crypto exchange offices and transfer the coins to their own wallets.
Commenting on the matter, Masharov stated:
He was referring to crypto trading platforms operating out of the Moscow City business center in the Russian capital. The offices of some of these firms were targeted in police raids earlier this year, as reported by Cryptopolitan, although they were later allowed to resume operations.
Russia to deploy special tool for crypto seizure
According to Evgeny Masharov, Russian law enforcement will soon have a tool allowing it to seize digital assets and wallets, despite the lack of a legal definition for cryptocurrency. However, without proper regulation, it will be hard to identify those behind a criminal organization, he warned.
The advisor believes the Federal Security Service (FSB) should be involved in solving crypto-related crimes as, in his words, cryptocurrency has become “highly criminalized ahead of its legalization.” Russia’s main security agency is already taking part in operations against illegal crypto miners.
A draft law that has been advancing in the State Duma, the lower house of Russian parliament, is expected to regulate the seizure of cryptocurrencies by the state.
Under the new legislation, which introduces a mechanism for coin confiscation, Russian authorities will be able to seek the assistance of foreign exchanges as well.
Russia is yet to comprehensively regulate its crypto market, including investments, with mining still being the only legalized crypto-related activity.
According to recent statements by the officials in Moscow, including representatives of the conservative Central Bank of Russia, this is likely to happen in 2026.
In November, Russia’s Ministry of Interior ranked crypto investment offers among Russian fraudsters’ favorite lures this year.
In October, Masharov proposed introducing criminal liability for some crypto transactions. The idea reminded many Russians of the currency restrictions that were in place during the Soviet era.
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Source: https://www.cryptopolitan.com/russian-fraud-money-laundered-through-crypto/
