Russia arrests more than 20 after raids on unregistered crypto exchange services

Russia has detained over 20 workers in raids on nine crypto exchanges over alleged laundering scheme tied to scam proceeds. Summary Russia has detained more than 20 people after raiding nine unregistered crypto exchange services in Moscow. Authorities alleged the exchanges converted scam proceeds into cryptocurrency and transferred the funds to Ukrainian handlers. Exchange employees and couriers are under investigation for alleged involvement in large scale fraud carrying penalties of up to 10 years in prison. The operation comes weeks before Russia’s new regulated cryptocurrency market is scheduled to begin on Sept. 1. According to an official statement from Russia’s Federal Security Service (FSB), authorities, working with the Interior Ministry, shut down nine unregistered cryptocurrency exchange services operating from Moscow’s business district after alleging they were used to convert money stolen through phone scams into cryptocurrency and send it to accounts controlled by Ukrainian coordinators. The operation took place at the Moscow International Business Center, commonly known as Moscow City, where more than 20 employees of the exchange services were detained. The FSB alleg...