Two Russian teenagers were arrested in a crackdown on a suspected crypto-powered “money laundering” ring. According to a police source, the teenage brothers were involved in running a crypto exchange with an organized crime gang, attracting other teens in the region to their scheme. The parents of some of the teens involved sent a statement to law enforcement agencies in April, alerting them to the situation. The two brothers offered small financial benefits to fellow teens for processing crypto-related transactions through their bank accounts, with one teen transacting almost $22,000 worth of funds and earning cash worth $4,400 in two months, which he hid at home.
The case has caught the attention of the federal investigative agency, the Investigative Committee of the Russian Federation, with committee chief Alexander Bastrykin personally intervening in the matter. The regional branch of the committee is also monitoring the case, and the media outlet reached out to the Khanty-Mansi Autonomous Okrug branch of the committee for comment, which is yet to be provided. Crypto exchanges currently have no legal status in Russia, but the nation’s anti-money laundering agency, Rosfinmonitoring, has called on Moscow to accelerate the rollout of regulatory laws as both the agency and police claim that crypto has become popular among money launderers and criminals in Russia.
In a separate development, Russia’s April exports of crude and petroleum products hit a five-month low due to Ukrainian drone attacks, according to the International Energy Agency. Lawmakers in Russia are set to debate a key piece of crypto-related legislation in the coming weeks. The draft bill proposes a ban on all domestic crypto exchanges, except for official sandbox operators, and suggests allowing energy providers to track home-based crypto miners while legalizing the industrial sector of crypto mining.
The unidentified police source in the Khanty-Mansi Autonomous Okrug claimed that the teenage brothers had attracted other teens in the region to their operation, which involved an organized crime group running an illegal crypto exchange. The parents of some of the teens involved in the scheme sent a statement to law enforcement agencies in April, sparking an investigation. The two brothers reportedly offered financial incentives to their peers for processing crypto-related transactions through their bank accounts, with one teen managing to transact nearly $22,000 worth of crypto funds and earning $4,400 in cash that he hid under his pillow.
The involvement of the federal investigative agency, the Investigative Committee of the Russian Federation, in the case has heightened its significance. Committee chief Alexander Bastrykin has personally intervened in the matter, and the regional branch of the committee is closely monitoring the situation. Despite the lack of legal standing for crypto exchanges in Russia, both the nation’s anti-money laundering agency and law enforcement agencies warn that crypto has become a popular tool for criminals and money launderers in the country. The media outlet attempted to reach the Khanty-Mansi Autonomous Okrug branch of the committee for comment, but they have not responded thus far, indicating that the investigation is ongoing.
Amidst a decrease in Russia’s crude and petroleum exports in April due to Ukrainian drone attacks, lawmakers are gearing up to discuss a significant piece of crypto-related legislation. The proposed bill seeks to ban all domestic crypto exchanges, with the exception of official sandbox operators, while also allowing energy providers to monitor home-based crypto miners. Additionally, the bill aims to legalize the industrial sector of crypto mining, highlighting the government’s efforts to regulate and control the crypto industry in the country.
