Latest

The number of cryptocurrency-related convictions in Russia soared by 5,000%

The Russian Federation has seen a staggering 5,000% increase in the number of court sentences related to cryptocurrency crimes, according to the Russian Foreign Ministry. Alexander Volevodz, head of the department of criminal law at MGIMO University, revealed that the first cryptocurrency crimes were observed in 2012. From 2012 to 2017, there were 72 verdicts in Russia related to cryptocurrency, with only one not being drug-related. However, between 2017 and 2021, more than 2,500 sentences have been handed down for cryptocurrency crimes.

These crimes encompassed a range of offenses, including theft, fraud, financial pyramids, and cryptocurrency ICOs. Volevodz emphasized that these figures only represent known crimes, as two major obstacles hinder the investigation and resolution of such cases. Firstly, international cooperation is essential in solving these crimes, and secondly, the lack of legal regulation surrounding cryptocurrencies in Russia creates challenges for law enforcement.

On a related note, Elizaveta Danilova, the head of the financial stability department at the Bank of Russia, announced that the regulator has no plans to establish and develop infrastructure platforms for cryptocurrency operations. This comes after the Bank of Russia expressed concerns in late October about the potential risks stablecoins and cryptocurrencies pose to fiat currencies.