Cryptocurrencies serve as acceptable forms of investment in many Russian financial pyramid schemes.
Cashing In On Crypto Schemes: Russia's War on Financial Pyramids
It's no secret that fishermen often disguise themselves as sailors on a ship full of sharks. In the digital world, those runnning financial pyramids are playing the same game, donning the suit of pseudo-investment internet projects, including in social networks and messenger apps. And as the Bank of Russia's latest report reveals, they've been dumping their ill-gotten gains into cryptocurrencies.
According to the regulator, Russian authorities have clamped down on a whopping 2780 subjects with signs of illegal activity in the first quarter of 2025. A staggering 1638 of those were financial pyramids, accounting for almost half of all identified activities. Other top offenders include illegal professional participants in the securities market (897) and illicit lenders (236).
But it ain't all bad news. The number of identified criminal activities decreased by 8.5% compared to the fourth quarter of 2024, even though it saw a significant 56% surge compared to the same period in 2024. It’s like the Wild West dying a slow death, one crooked sheriff at a time.
The kicker? Over 86% of these crypto-scam artists have been squirreling their dirty cash into their digital "projects" using none other than cryptocurrencies. Ads for these Ponzi schemes can be found splashed across non-financial websites, social media, and even stool pigeons like bloggers promoting the swindle.
Now, you might be wondering, why the hype around the crypto-wildcat schemes? Well, apart from the potential volatility of cryptocurrency, it affords a certain level of pseudo-anonymity, making it an attractive tool for shady dealings like these. It's like they're betting on Bitcoin Roulette while bleeding their victims dry.
Against this relentless tide, Russia is stepping up its game. Ever the savvy regulatory body, it's spearheading an initiative to launch a regulated exchange for "super-qualified investors." The goal? To legally channel digital asset transactions and lower the veil on crypto-scam artists like never before. That's right, the law enforcement jig is up, and the grifters' reign is coming to an end.
Moscow, Zoya Oskolkova
© 2025, RIA "Novy Day"
- The Bank of Russia's latest report indicates that crypto-scam artists are using cryptocurrencies to launder their ill-gotten gains, often disguising their activities within pseudo-investment internet projects on social networks and messenger apps.
- Russian authorities have been cracking down on financial pyramids, illegal professional participants in the securities market, and illicit lenders, as revealed in the first quarter of 2025, with a total of 2780 subjects found engaging in suspicious activities, with 1638 being financial pyramids.
- The crypto-wildcat schemes, with their potential volatility and pseudo-anonymity, provide an attractive tool for shady dealings, as evidenced by over 86% of these scam artists using cryptocurrencies to fund their digital "projects."
- In response to the surge in crypto-related financial crimes, Russia is planning to launch a regulated exchange for "super-qualified investors," with the aim of legally channelling digital asset transactions and exposing crypto-scam artists like never before.
