Why Did Russia Target Crypto Exchanges In Moscow City?
Russia’s Federal Security Service raided nine unregistered cryptocurrency exchange services in Moscow City as authorities stepped up enforcement against informal cash-to-crypto businesses accused of helping move fraud proceeds abroad.
The FSB said more than 20 employees were detained during the joint operation with the Interior Ministry. Authorities alleged that the exchanges converted money stolen from Russian victims of telephone scams into cryptocurrency before transferring the assets to wallets controlled by handlers outside the country.
The alleged network began with conventional fraud rather than crypto. Victims were persuaded to hand over rubles, couriers collected the cash and delivered it to exchange offices in Moscow City. Employees then allegedly converted the money into digital assets that could be transferred across borders without relying on international bank payments.
Some couriers were between 18 and 25 years old and had been recruited from Russian regions despite having little financial knowledge, according to the FSB. Investigators are tracing the movement of funds and attempting to identify additional victims.
The Interior Ministry opened a criminal case involving large-scale fraud, an offense that can carry a prison sentence of up to 10 years under Russian law. Authorities are also examining whether recovered assets could eventually be used to compensate victims.
Why Is Moscow City Important To Russia’s Crypto Crackdown?
Moscow City has developed into an important center for Russia’s over-the-counter cryptocurrency market, with private exchange offices allowing customers to convert substantial amounts of cash into bitcoin, stablecoins and other digital assets.
That model serves legitimate demand for fast settlement, but it also creates a potential bridge between physical cash and assets that can move internationally between wallets within minutes. The latest case therefore focuses less on cryptocurrency itself than on how informal exchanges can connect traditional fraud with blockchain-based transfers.
Russian authorities had already increased scrutiny of Moscow City exchange businesses during 2025, carrying out searches linked to suspected illegal transfers abroad. Some operators temporarily suspended cash services following those actions.
The latest raids indicate that enforcement is increasingly focused on entire transaction chains: the scam call, the victim, the courier, the cash desk and the destination wallet.
Investor Takeaway
Russia’s crackdown is becoming a market-structure issue as well as a criminal enforcement issue. Informal exchanges may face greater pressure as the government creates regulated channels for crypto trading, custody and record keeping.
How Will Russia’s New Crypto Rules Change The Market?
The raids come weeks before a new framework governing domestic cryptocurrency circulation is scheduled to take effect on Sept. 1. The rules will create recognized intermediaries, including crypto exchanges and digital depositories, and bring more activity under formal supervision.
Both qualified and non-qualified investors will be able to conduct certain cryptocurrency transactions through approved intermediaries. Non-qualified investors will generally face annual purchase limits and testing requirements, while qualified investors will receive broader access.
The Bank of Russia is also developing requirements for organized trading, custody and record keeping. Cryptocurrency will remain prohibited as a domestic means of payment, even as Russia allows greater use of digital assets for investment and some international trade activity.
For informal exchange offices, the regulatory change is important because it narrows the gray area in which many businesses previously operated. Once approved exchanges and custodians are available, authorities have a clearer basis for challenging large cash-based operators that remain outside the supervised system.
That could push more trading toward licensed firms, but enforcement may also have an unintended consequence. If demand for private cash conversion remains strong, brokers could move away from visible offices and conduct transactions through private messaging groups, personal meetings or decentralized wallet networks.
Can Regulation Reduce Crypto-Based Money Laundering?
The case illustrates why regulating exchanges is only one part of controlling illicit cryptocurrency flows. Blockchain transfers can often be traced after funds enter crypto, but investigators must still establish how the money entered the system and connect wallet activity with real people.
That requires exchanges to verify customers, maintain transaction records and investigate suspicious patterns. Large cash deposits delivered by young couriers and followed by rapid transfers to external wallets would be the type of activity regulated intermediaries are expected to scrutinize more closely.
The geopolitical element of the FSB’s allegations does not change that compliance problem. Russian authorities linked the fraud to Ukraine-based call centers, but the alleged conversion infrastructure operated inside Moscow. The central question for regulators is how cash associated with suspected scams could enter local exchange offices and be converted into transferable digital assets.
Moscow City will therefore become an early test of Russia’s new regulatory approach. Authorities must determine whether they can move legitimate cryptocurrency activity toward supervised exchanges without simply pushing informal transactions deeper underground.
Closing nine exchange offices can disrupt individual laundering channels. The harder task will be reducing the demand and infrastructure that allowed cash from fraud victims to move from couriers into crypto in the first place.