Russian Police Arrest 3 Men on Bitcoin-Related Charges

Bitcoin symbol on-screen among piles of golden Bitcoins
Three Russian men have been arrested for illegally trading approximately $10 million worth of Bitcoin to rubles through an illegitimate exchange.

Three Russian men are facing criminal charges after they were linked to the illegitimate conversion of approximately $10 million worth of Bitcoin into Russian rubles.

The three individuals, who were apprehended in Kostroma, allegedly conducted their illegal banking schemes using hundreds of bank cards and SIM cards that were believed to contain the Bitcoin funds they stole.

Your TOR usage is being watched

This is according to statements from the police and a press officer from the Ministry of Internal Affairs in Russia.

According to reports from prosecutors, the trio is said to have been covering up their tracks by transferring the funds through family members’ bank accounts to avoid having an incriminating paper trail.

Their efforts, which ultimately failed, would have paid off to the tune of over 500 million rubles.

The First to Face Criminal Charges over Cryptocurrency

The arrest of the three Kostroma men marks the first time the Russian government will be pressing criminal charges against Bitcoin criminals in the country.

Previously, Russia had adopted a rather dismissive way of dealing with crimes related to cryptocurrency, where the courts simply blocked Bitcoin exchange websites that offered to convert digital currency into traditional currency.

The three men will be facing criminal charges for illegally banking and trading cryptocurrency in the country.

Their arrest was as a result of a joint effort by the local police in Kostroma and Federal Security Service officers.

This indicates that the authorities are beginning to take note of the widespread illegitimate Bitcoin trade within the country, and are focusing on the individuals believed to be behind the schemes.

Must READ:   Council Staffers Fired for Bitcoin Mining in Crimea

This is despite the fact that there are several legal gray areas when it comes to the trade of cryptocurrencies in Russia.

Bitcoin trading in Russia remains a controversial phenomenon, receiving criticism from entities as high up as the Russian Central Bank, seeing that the country’s approach to regulating the digital currency is far from ideal.

Despite talks that the government should and will adopt strict, yet permissive regulatory practices to govern the use of Bitcoin within their borders, converting rubles into Bitcoin and vice versa is an activity that remains in mayhem.

Russia is Not Prepared for Bitcoin

Bitcoin symbol on-screen among piles of golden Bitcoins
Minister propoused to block out Bitcoin trading services to everyone

The country’s deputy finance minister, Alexei Moiseev, has put forth a proposal to block out Bitcoin trading services to everyone but qualified investors. So far, the proposal is the only viable solution for the government, which seeks to keep track of all Bitcoin transactions in the country.

Nevertheless, it is far from an ideal solution since many more “unqualified” investors will be locked out of the lucrative venture.

Despite the lack of a seemingly solid plan from the Russian government, the Bitcoin community in Russia is certain that clear regulations are all that’s needed to stop the illegitimate trading of Bitcoin in the country.

Anatoliy Knyazev, an executive at EXANTE who shares the same sentiments as the Russian cryptocurrency community, is quoted as saying that making it legal to transfer rubles into bitcoin and vice versa will eradicate the illegal trading of the cryptocurrency completely.

Search for Regulatory Framework Continues

The country is currently struggling to find a balance between cracking down on money launderers and promoting the use of cryptocurrencies within its borders.

Must READ:   Julian Assange Thanks U.S. Government for 50,000% Gains on Wikileaks’ Bitcoin Holdings

Cryptocurrencies such as Bitcoin and Ethereum are already being traded and used globally as the main type of currency on several online platforms.

Some developments in Russia bring the country closer to embracing cryptocurrency fully, including President Putin’s support of Ethereum.

It is up to Russia’s Ministry of Finance to implement a sound legal framework that will govern the use of cryptocurrencies in the country.

Until then, it is likely that more Bitcoin-related arrests will be made.

Write for us


The articles and content found on Dark Web News are for general information purposes only and are not intended to solicit illegal activity or constitute legal advice. Using drugs is harmful to your health and can cause serious problems including death and imprisonment, and any treatment should not be undertaken without medical supervision.

You need to enable JavaScript to vote

10 Replies to “Russian Police Arrest 3 Men on Bitcoin-Related Charges”

  1. Good day! This is my first visit to your blog! We are a group of volunteers and starting a new
    project in a community in the same niche. Your blog provided us useful information to work on. You
    have done a wonderful job!

  2. Please let me know if you’re looking for a article author for your blog.
    You have some really good articles and I believe I would
    be a good asset. If you ever want to take some of the load
    off, I’d really like to write some material for your blog
    in exchange for a link back to mine. Please blast me an email if interested.

  3. Today, I went to the beachfront with my kids. I found a
    sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She placed the
    shell to her ear and screamed. There was a hermit crab inside and
    it pinched her ear. She never wants to go back! LoL I know this is totally off
    topic but I had to tell someone!

  4. I love your blog.. very nice colors & theme.
    Did you create this website yourself or did
    you hire someone to do it for you? Plz answer
    back as I’m looking to design my own blog and would
    like to know where u got this from. thank you

  5. I’m amazed, I must say. Rarely do I encounter a blog that’s both educative
    and engaging, and let me tell you, you have hit the nail on the head.
    The problem is something too few folks are speaking intelligently about.
    I am very happy I stumbled across this in my
    search for something concerning this.

Leave a Reply

Your email address will not be published. Required fields are marked *