Crypto-related Criminal Cases Rise by 40% Year-on-Year in Russia

Source: AdobeStock / Andrey Milkin


There’s been an increase in crypto-related legal activity in Russia – with situation figures growing fast in the civil and criminal courts.

Per the press outlet Izvestia, researchers in the cybersecurity outfit RTM Group compiled a study showing that 1,531 law suits associated with cryptoassets were launched this past year – although these varied in subject from crypto exchange-related matters to illegal crypto mining.

The vast majority of the instances – 954 – were criminal cases launched through the police and prosecutors, many they were associated with drug trafficking. Numerous cryptoasset-related cases were also money washing-themed, while several were associated with illegal gambling organizations.

From the 577 civil cases, most were “claims for that recovery of illegal enrichment” when “buying cryptocurrencies.” Generally, this seems to become cases of small-scale fraud, whereby brokers (or bogus brokers) are purported to have overcharged their customers for performing crypto purchases on their own clients’ account.

An additional 9% from the civil cases pertained to personal bankruptcy proceedings.

Illegal crypto mining seems to become rising fast. Although mining is within a legitimate gray area – it’s neither acknowledged as an economic activity nor outlawed – stealing electricity in the grid or using electricity meant to power public structures and facilities included in “underground” mining efforts continues to be increasing in Russia. 

Lately, the mind of the leading mental healthcare facility was arrested on charges of stealing the institution’s electricity to cover their own crypto mining efforts.

The RTM Group noted that this past year, individuals and firms located in Russia compensated 61.5 million rubles (over USD 1m during the time of writing, but likely significantly more during the period of 2021) in nine installments of illegal electricity usage included in crypto mining operations.

Within the 738 drug-related cases recorded, they claimed that crooks had “resorted for this approach to payment” in order to “maintain their anonymity.”


Find out more: 
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