Fun

Over Half of This Year’s Financial Pyramids in Russia Involved Crypto, Bank of Russia Finds

News Feed - 2022-07-17 05:07:35

Over Half of This Year’s Financial Pyramids in Russia Involved Crypto, Bank of Russia Finds


A majority of the financial pyramids identified in 2022 used cryptocurrencies in one way or another, Russia’s central bank announced in a new report. Amid Western sanctions, Russian scams have stepped up their activities, often claiming to be licensed by foreign authorities to offer access to crypto assets. Russian Pyramids Take Advantage of Western Sanctions and Popularity of Crypto


Over 56% of the pyramid schemes in the Russian Federation during the first half of the year, or 537 entities, raised funds in various cryptocurrencies or advertised crypto investments, a report devoted to countering illegal activities in the country’s financial market reveals. The paper has been published by the Central Bank of Russia (CBR).


Quoted by RBC Crypto, the regulator remarked that the sanctions imposed by the West over the conflict in Ukraine have dramatically changed the working conditions for legal financial institutions in Russia and fraudsters benefitted from the situation.


Russians were looking for alternative ways to invest, and the response to this demand came in the form of new financial pyramids. The monetary authority explained that these were mostly small-scale schemes with a short lifespan.


Between January and June 2022, the central bank was able to identify a staggering number of these scams — more than 2,200 companies, projects, and individual entrepreneurs whose operations showed signs of illegal financial activity. The report notes that the number is three times higher than the figure from the same period in 2021.


Crypto is not the only area such entities have been interested in, as 671 of them targeted the securities market. According to the CBR, these companies often pretend to be authorized by a regulatory body in a different jurisdiction and collect money exclusively in foreign fiat or cryptocurrency.


To curb their activities, Bank of Russia has notified the relevant law enforcement agencies, the Federal Tax Service, the Roskomnadzor telecom watchdog, and domain name registrars. The CBR also takes regular steps to block suspicious websites and maintains a blacklist of entities that are likely to be illegally operating in the country’s financial sector.


The Central Bank of Russia already registered an increase in the number of new financial pyramids exploiting the crypto theme in May. Another reason for their growth has been the financial uncertainty which boosted interest in schemes around investment opportunities in the digital asset space.


Meanwhile, the Russian Ministry of Internal Affairs suggested this week that the authorities in Moscow should introduce criminal liability for those providing money-laundering services to crypto fraudsters. These so-called ‘droppers,’ sometimes unsuspecting individuals who allowed scammers to use their bank accounts and crypto wallets, can get up to seven years of prison time for their involvement, if lawmakers accept the ministry’s advice. Tags in this story Crypto, crypto investments, crypto pyramids, Cryptocurrencies, Cryptocurrency, Digital Assets, financial pyramids, Fraud, fraudsters, investment schemes, pyramid schemes, pyramids, Russia, russian, scammers, Scams


Do you think the number of crypto pyramids in Russia will continue to grow, despite the market downturn? Share your expectations in the comments section below. Lubomir Tassev


Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. SEC Fines John McAfee"s Associate $375K in Penalties for ICO Promotions NEWS | 12 hours ago Accused Bitfinex Bitcoin Money Launderer Granted Permission to "Engage in Legitimate Employment" NEWS | 14 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleVietnam’s Blockchain Industry Faces Shortage of Talent Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItDraft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament


A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market ... read more.Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin

News Feed

Ezra Reguerra5 hours agoHalf of stolen NFTs are sold within 3 hours: Nifty Newsletter, June 28–July 4Swiss bank Credit Suisse has partnered with the Swiss Football Association to release NFTs in support of women’s so
Solana Drops Below $100 For First Time In A Year — Is An 80% Correction Underway?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Crypto Marketplace Purse.io to Dissolve Operations After 6 Years
Crypto Marketplace Purse.io to Dissolve Operations After 6 YearsOn April 16, the crypto firm Purse.io announced the company is planning to dissolve after six years of operation. The
Derek Andersen3 hours agoARK, Glassnode propose Bitcoin economic analytics framework using new metricIn Cointime Economics, the time Bitcoin has been held is considered when it is transacted, giving hodlers’ transactio
China leads the world in gen AI adoption but falls behind in full implementation
Savannah Fortis10 hours agoChina leads the world in gen AI adoption but falls behind in full implementationA recent study revealed that China leads the world in AI usage and investment, while the U.S. remains the leader
Twitter is Losing its S%# Over This $4 Million Golden Toilet
An solid gold toilet from Churchill"s birthplace goes missing. | Source: AP Photo, FileGolden toilets don’t come around very often, so when they go missing, people talk about
Cryptocurrency Law Approved in Brazil — Green Mining Tax Exemptions and Asset Segregation Issues Left Out
Cryptocurrency Law Approved in Brazil — Green Mining Tax Exemptions and Asset Segregation Issues Left Out A cryptocurrency law, which had been in discussion for several months, h
Dogecoin Soars After Elon Musk Announces Tesla Will Accept DOGE
Dogecoin Soars After Elon Musk Announces Tesla Will Accept DOGE Dogecoin got a boost Tuesday morning when Elon Musk announced that Tesla will be accepting dogecoin for some product
Bitcoin speculators sit on 93% unrealized losses after $365M 'wipeout'
William Suberg1 hour agoBitcoin speculators sit on 93% unrealized losses after $365M "wipeout"Bitcoin futures liquidations leave market newcomers licking their wounds after a giant BTC price drawdown.869 Total views1 Tot
Shiraz Jagati9 hours agoAI in healthcare: New tech in diagnosis and patient careFrom enhancing disease diagnosis to personalizing patient care, here’s how AI can reshape the future of healthcare.484 Total views4 Total
A Recent SEC Filing Shows the World’s Largest Asset Manager Blackrock Plans to Launch a Metaverse ETF
A Recent SEC Filing Shows the World"s Largest Asset Manager Blackrock Plans to Launch a Metaverse ETF According to a recent filing, Blackrock, the multi-national investment company
Nightmare Come True: User Pays $2.6 Million in Transaction Fees to Send $134 of Ether
Nightmare Come True: User Pays $2.6 Million in Transaction Fees to Send $134 of EtherA record ethereum transaction fee has been paid today: $2.6 million to transfer $134.