Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at how law enforcement in the Russian city of Saint Petersburg have begun to crackdown on illegal crypto exchanges.
Saint Petersburg Crackdown
Police enforcement in Saint Petersburg, Russia, have raided dozens of addresses in the city and beyond, according to media outlets. This is part of a Russian crackdown on illegal cryptocurrency exchanges and part of a broader campaign to regulate the cryptocurrency industry and prevent its exploitation for criminal activities. This news comes via Russian media outlets 47news and 78.ru, and they reported that the police officers had completed raids in “14 different areas.” The reports also claim the officers have arrested or cautioned “over 90 people” as part of the raids. The Economic Security Department of the Ministry of Internal Affairs also reportedly took part in the operation.
The exchanges are apparently part of a wider network and are potentially connected to a money laundering ring. 47News noted that “hundreds” of Moscow-based Russian Ministry of Internal Affairs officials, local police officers, and Criminal Investigation Department agents met at 4 am on the 2nd of October. From there they began rolling raids on addresses between 6 and 7am that same day. Afterwards the police divided into dozens of groups and each senior member of the group received a sealed package with a search warrant enclosed.
In Russia there is no legal status given to crypto exchanges, although the government suspects many companies have been assisting Russians smuggle money out of the country. They believe these firms are making use of crypto as a remittance tool for illegal cross-border currency transfers. The media outlets refer to the exchanges’ masterminds as being charged with organised crime, illegal banking activities, and illegal circulation of payment instruments-related offenses.
The security forces have been investigating a residential house in the village of Lisiy Nos, in the Primorsky District of Saint Petersburg, according to reports. It is believed by the Ministry of Internal Affairs that this is the primary residence of the orchestrator of a “crypto-for-cash” operation. Back in late September ministry officials in Moscow raided a travel agency which they suspected to be acting as a front for a $2.2 million cross-border crypto exchange. This exchange was part of a wider network with offices located in many parts of Russia. The criminals communicated with clients using messaging apps and charged a commission of at least 1% for each transaction.
Meanwhile, authorities in the United States as part of the Justice Department have seized control of suspected crypto exchange domains. Two Russian nationals have also been arrested and charged with money laundering-related offences as part of a billion dollar money laundering via crypto service.
Have a great day.
Peace. CryptoGod-1.
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