Crypto exchange raided under suspicion of fronting as a money-laundering gang

Russian and Belarusian security have made 60 arrests in a raid on a crypto exchange believed to be a front for a money-laundering gang.

State-run news agency TASS reported that about 60 people were detained, with officers stating that the “international criminal group” had “stolen money under the pretext of offering crypto trading.” Allegedly, the group also pretended to sell “commodities and foreign exchange currencies.”

Russian Ministry of Internal Affairs official Irina Volk said that detectives believe the allegedly fraudulent crypto exchange had stolen money from citizens of both Russia and Belarus. 80 raids were conducted in the Moscow region and the Belarusian capital, Minsk, as reported by Crypto News.

A number of private residences were raided, as seen in footage released by the ministry. These were seemingly being used as call centers and security officers seized “computer equipment, mobile devices, accounting documentation, and access to cloud storage.”

One of the suspected leaders of the group was arrested in Moscow, as police seized over eight million rubles (around $88,900) and 23 million rubles ($255,560) worth of foreign currency, as well as various pieces of computer equipment.

What happens next in the money laundering case?

The Russian Ministry of Internal Affairs states that its Investigative Department will handle the case in Russia, while in Belarus, the country’s Investigative Committee will launch a simultaneous fraud-related criminal case against the suspects. The two investigations are thought to be working in tandem with one another, with suspects arrested and being held in both countries.

Both Russian and Belarusian security officials have reportedly claimed that crypto-related crime is increasing. Crypto exchanges remain entirely unregulated in Russia, with the country being slow to legalize cryptocurrencies in comparison to other major world powers.

Blockchain technology has been a prickly subject for the nation, with an initiative led by exiled opposition leader Mark Feygin using blockchain technology to enable Russians to anonymously register a “protest vote” against Putin.

Featured image: Ideogram

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