Most of the funds stolen by Russian cybercriminals end up being converted into cryptocurrencies, according to representatives of public institutions consulting the Moscow government on new laws and regulations.
Law enforcement agencies should be able to confiscate digital coins, despite the lack of a law that clearly defines the issue, argued Yevgeny Masyarov, a member of the Public Review Committee on Bills and Regulatory Laws, adding to the push to adopt a comprehensive framework for digital assets.
Russian scammers prefer to convert funds into cryptocurrencies
Most of the illegally obtained funds by those involved in cybercrime are laundered through conversion into cryptocurrencies.
Evgeny Masyarov, member of the Committee for Public Examination of Bills and Regulatory Laws of the Citizens’ Chamber of the Russian Federation, said: This advisory body is an organ of Russian civil society.
The adviser said in an interview with TASS that telephone scams remain the most popular method of theft among fraudsters, despite a reported surge in schemes involving the sale and rental of homes, cars and other property.
Masyarov further emphasized that:
“Furthermore, two-thirds of the funds obtained by defrauding the public are laundered through conversion into cryptocurrencies.
He also pointed out that, judging by the appeals received by the Chamber, the measures introduced by the authorities, including the establishment of criminal liability for “droppers” (money mules) in Russian slang, are forcing fraudsters to use more insidious methods and recruit more personnel.
Criminal groups began posting advertisements for victims to hire “couriers” to transfer funds. The organizer of the scheme then exchanges fiat currency through a cryptocurrency exchange and transfers the coins to his wallet.
Regarding this matter, Masyarov commented as follows:
“Given that there is no law regulating virtual currencies in our country, the turnover of virtual currency exchanges can only be assessed by the real beneficiaries. Only lazy people do not know about virtual currency exchanges operating in the city of Moscow.”
He was referring to a cryptocurrency trading platform that operates out of a business center in the Russian capital, Moscow. The offices of some of these companies were targeted in police raids earlier this year, but have since been allowed to reopen, Cryptopolitan reported.
Russia to deploy special tools to seize cryptocurrencies
According to Evgeny Masyarov, despite the lack of a legal definition of cryptocurrencies, Russian law enforcement will soon introduce tools that will allow them to seize digital assets and wallets. But he warned that without proper regulation, it will be difficult to identify those behind criminal organizations.
The advisor believes that the Federal Security Service (FSB) should be involved in solving crypto-related crimes because cryptocurrencies are “highly criminalized prior to their legalization.” Russia’s main security services are already participating in operations against illegal cryptocurrency miners.
A bill being advanced in Russia’s lower house of parliament is expected to restrict the seizure of cryptocurrencies by the state.
Under the new law, which introduces a mechanism for coin confiscation, Russian authorities will also be able to request assistance from foreign exchanges.
Russia has not yet comprehensively regulated the cryptocurrency market, including investment, and the only cryptocurrency-related activity that is legalized is mining.
Recent statements from Moscow officials, including representatives of Russia’s conservative central bank, say this is likely to happen in 2026.
In November, Russia’s Ministry of Internal Affairs ranked offers to invest in cryptocurrencies among the favorite lures used by Russian scammers this year.
In October, Masyarov proposed introducing criminal liability for some crypto transactions. This idea reminded many Russians of the currency restrictions in place during the Soviet era.
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