Russia cracks down on 9 unregistered crypto exchanges in Moscow City

Russia’s Federal Security Service (FSB) raided nine unregistered crypto exchange services in Moscow City, saying they were used to move fraud proceeds tied to Ukraine-based scam call centers. For high-risk PSPs, the important part is not the police theater; it is the mechanism: cash from phone-fraud victims was allegedly turned into crypto and pushed abroad.

1. The FSB said it detained more than 20 employees at the Moscow International Business Center (Moscow City) during a joint operation with Russia’s Interior Ministry on Friday. The stated target was channels allegedly used to transfer illicit funds abroad through crypto assets.
2. According to the FSB, the exchanges converted money stolen from Russian victims of phone scams into cryptocurrency and sent it to accounts belonging to what authorities described as Ukrainian handlers. The agency said the proceeds came from fraud connected to scam call centers based in Ukraine.
3. Authorities said some couriers aged 18 to 25 collected cash from victims and delivered it to the exchanges for conversion into crypto. The FSB also said young people from Russian regions were recruited to work at the exchanges despite having limited financial literacy.
4. The Interior Ministry launched a criminal investigation into large-scale fraud, an offense punishable by up to 10 years in prison under Russian law. The FSB said it is continuing to identify victims and assess potential compensation.