Russian Police Close Illegal Crypto Exchange Worth IDR 33 Billion

Russian police closed an illegal crypto exchange worth IDR 33 billion (Photo; Doc. Crypto Economy)

JAKARTA - The Russian police recently succeeded in closing an illegal crypto exchange operating under the guise of a travel agency in Moscow. The crypto exchange is thought to have helped its clients transfer funds abroad with total transactions reaching 2.2 million US Dollars (Rp33 billion). This disclosure highlights how serious Russian authorities are in dealing with illegal banking activities that use digital assets as a cross-border transaction tool.

In an official statement released by the Russian Ministry of Home Affairs, the authorities claimed that the crypto exchange disguised itself as a travel agency to hide its illegal activities. Police said that exchange operators run cross-border crypto exchange services illegally, helping clients send money overseas using crypto assets. The exchange allegedly charges a commission of 1% of any cash transaction made by customers seeking to transfer money to overseas-based crypto wallets. Moscow police have raided the exchange's headquarters, finding evidence in the form of US dollar bundles, receipts, and computer equipment used for this operation.

In a video released by the Russian Ministry of Home Affairs via Telegram, officers can be seen searching the office and intimidating a staff member. When asked about its business activities, the staff only replied that they "only made crypto exchange transactions and nothing else." Apart from raiding the headquarters, the police also conducted searches in several related private offices and apartments, where they confiscated cash in various currencies, communication devices, documents, and other items related to the illegal operation. A suspect suspected of being the main leader of this operation has been detained and is facing further investigation.

The Russian police claim that the main service provided by this exchange is to allow Russian citizens to withdraw funds from abroad. The group uses crypto assets as a remittance tool, utilizing legal loopholes in Russia's cross-border fiat currency transfer regulations. Although Russian law strictly regulates cross-border fiat transfers, crypto exchanges currently do not have legal status in the country. Many have accused unofficial exchanges like this of violating the law under the guise of crypto investment service providers.

This case is not the first to happen in Russia. According to Crypto News information, in March 2023, a number of reports emerged about the use of several crypto exchanges in Moscow to send stablecoin Tether (USDT) to people in the UK. These reports accuse those exchanges of providing services that allow Russian citizens to withdraw cash overseas. In May 2024, the Central Bank of Russia also reported a sharp increase in transactions of its citizens on crypto exchanges and peer-to-peer trading platforms. This phenomenon shows that despite strict regulation, the use of crypto as a cross-border transaction tool continues to increase in Russia.