Cryptocurrency crimes in Russia.
Russia has been one of the main hubs for crypto trade in the world. When Russia started a war with Ukraine, the impact of the war was directly seen in the crypto market, as the market imploded and crashed. The loss of the value of cryptocurrencies was in billions. After seeing consistent lows, now the cryptocurrency market is reviving itself, was stated by some of the crypto experts.
Russia being one of the biggest hubs for cryptocurrency, also has become one of the main hubs for criminals to commit crime in the crypto sphere. Cryptocurrency crimes are on a rise in Russia as the Russian lawsuit received over 1000 cases last year which were officially recorded. The count of unofficial cases of crypto crime might be double the number of the cases recorded.
How does Crypto crime happen in Russia?
Crypto crime in Russia happens when hackers hack into the account of the investors and rob them off of their cryptocurrencies. In Russia, cryptocurrencies are also used in drug dealing, as they are used to pay the drug dealers. Majority of the cases, around 954, have been initiated under various articles of the Russian Criminal Code. Another category of proceedings are civil cases and some of them are bankruptcy and administer related cases.
Rise in the crypto crime in Russia.
It is noted that, since the cryptocurrency has become a hub for crypto investors, it is also experiencing a rise in the crime rate in the market. It is recorded that, the bankruptcy cases almost doubled since 2021. In these proceedings, the Russian judiciary refers to crypto assets as property, and the parties are required to provide the documents which proves the fact that the coins are theirs.
The unethical and illegal use of electricity to mine cryptocurrencies in Russia is considered to be a civil crime. During the examined period, Russians actively functioning underground mining facilities had to pay a penalty of 61.5 million Rubes, in nine such cases.
We are observing that, not only in Russia, crypto crimes are on a rise across the borders of the countries. The situation is sure getting out of control as investors are losing out on millions and billions of dollars due to the illegal activities of a few. Though US has formed statutory bodies to regulate the market, India is devising a tool to detect crypto transactions, a single regulatory body, having common control cryptocurrencies around the world might be a way to curb the instances of crypto crimes.