Russia has cracked down on nine unregistered cryptocurrency exchanges in Moscow and detained about 20 staff. Cointelegraph reported on Aug. 7 that the Federal Security Service (FSB) raided the Moscow International Business Center over suspected money laundering linked to Ukraine-based scam call centers.
The FSB believes the exchanges served as a channel to convert money stolen in phone scams into cryptocurrency and send it overseas. Authorities said funds taken from Russian victims were converted into cryptocurrency and then transferred to accounts the FSB identified as operated by Ukrainian handlers.
The crackdown was conducted jointly by the FSB and Russia's Interior Ministry. Authorities said some couriers aged 18 to 25 collected cash from victims and delivered it to the exchanges. The FSB said young people from regions across Russia were assigned to work for the exchanges with low levels of financial literacy.
The Interior Ministry has launched a criminal investigation on charges of large-scale fraud. Under Russian law, the charge can carry up to 10 years in prison. The FSB is continuing to identify victims and estimate the possible scale of compensation.
Chi-gyu Hwang
delight@d-today.co.kr