Russia’s Federal Security Service (FSB), in cooperation with the Russian Ministry of Internal Affairs, has arrested more than 20 people in August 7 raids targeting unlicensed cryptocurrency exchange points in the Moscow City financial district. Authorities accuse these facilities of being part of a money-laundering network for phone scams, in which stolen cash was converted into crypto to be moved out of Russia.
FSB Targets Moscow City Crypto Exchanges
According to the FSB, the operation targeted nine “unauthorized financial channels” operating out of crypto exchange offices in Moscow City, the largest financial complex in the Russian capital. These facilities are accused of providing cash-to-digital-asset exchange services outside the supervised financial system.
The agency stated that more than 20 people were arrested during the searches, conducted in coordination with the Russian Ministry of Internal Affairs. Documents related to currency exchange operations, along with evidence for the investigation, were seized at the inspected locations.
While the initial focus of the case was on the group of exchanges operating outside the licensing system, the FSB contends that these facilities did not merely process standard crypto transactions. Authorities accuse them of being a link in a financial network serving phone scams targeting Russian citizens.
How the Alleged Laundering Network Worked
The case revolves around a cash-to-crypto scheme: cash from phone scam victims was collected domestically, brought to crypto exchange offices in Moscow City, and converted into digital assets to bypass the traditional banking system, according to allegations by Russian authorities.
One of the offices under investigation was alleged to have processed up to $2 million in a single day at times. This figure has not been independently verified, but if accurate, it shows that the crypto exchange points in the case did not merely handle small retail transactions, but could have served as liquidity infrastructure for illicit financial operations.
Unregistered exchanges are attractive to financial criminals because they can process cash quickly, reduce identity verification requirements, and help transfer value across borders without going through the banking system. For Russian authorities, this is a critical bottleneck in tracing money flows from scams targeting domestic citizens.
The matter is currently being investigated as large-scale fraud. If convicted, those involved could face sentences of up to 10 years in prison under Russian criminal law.
Young Couriers and Scam Call Centers
Russian authorities said many of those arrested are between the ages of 18 and 25 and were recruited to collect cash from victims, then hand it over to crypto exchange points. This group is described as young people from various regions across Russia, with limited financial literacy, lured by promises of quick money. They were not necessarily the masterminds of the scheme, but served as the link helping funds flow from victims into the crypto exchange system.
This operational method frequently appears in phone fraud cases: victims are persuaded to transfer or hand over money after receiving calls impersonating banks, official authorities, or financial support agents. In the Moscow City case, the FSB accuses Ukraine-linked scam call centers of using the courier and exchange network to move money out of Russia.
Data from the Central Bank of Russia shows that financial fraud risks remain high. In 2025, the agency detected more than 7,000 pyramid schemes and financial frauds, recorded over 4,600 crypto wallets linked to victims, and blocked more than 21,500 suspicious online resources.
Russia’s Wider Crypto Crackdown
The arrests in Moscow City come as Russia tightens its crypto regulatory framework. The Central Bank of Russia stated that new laws on digital assets will take effect on September 1, 2026, with a transition period extending to July 1, 2027, allowing market participants to apply for licenses and adjust operations.
Under the new framework, non-professional investors in Russia are limited to purchasing digital assets up to 300,000 rubles per year through an intermediary. Crypto is still not permitted for use as a domestic means of payment, although Moscow has increasingly tested and discussed the role of digital assets in cross-border payments.
What Comes Next
The case is currently being investigated as large-scale fraud. The next focus will be for authorities to determine the role of each group within the operation, from the exchange offices in Moscow City to cash-collecting couriers and transaction coordinators.
If the investigation proves that the crypto exchange points were fully aware that the funds originated from fraud, the case could expand to charges involving money laundering or organizing illegal financial activities. This will depend on transaction records, seized devices, and statements from those arrested.
The Moscow City case will also serve as a test for how Russia handles unregistered exchanges accused of facilitating criminal money flows, as the domestic crypto market prepares to enter a phase of stricter regulation starting in September.
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Source: https://nftplazas.com/russia-arrests-20-unregistered-crypto-exchanges-moscow-city/
