Russian Police Launch Extensive Crackdown on Illegal Crypto Exchanges in Saint Petersburg

Russian Police Launch Extensive Crackdown on Illegal Crypto Exchanges in Saint Petersburg

Russian authorities have launched a large-scale crackdown on illegal cryptocurrency exchanges, with raids conducted across Saint Petersburg and several other regions. According to local media reports from 47news and 78.ru, the raids took place in "14 different areas," with officers targeting addresses believed to be involved in illicit crypto operations. Over 90 individuals were either arrested or cautioned in these raids, with the Economic Security Department of the Ministry of Internal Affairs playing a key role in the operation.

The illegal exchanges are suspected to be part of a wider network involved in money laundering and illegal cross-border currency transfers. Police officials reportedly initiated “rolling raids” early in the morning on October 2, involving hundreds of officers from the Russian Ministry of Internal Affairs, local police, and the Criminal Investigation Department. The coordinated raids, which began at 6-7 am, involved officers receiving sealed search warrants before proceeding to the targeted locations.

Authorities are particularly focused on the village of Lisiy Nos in the Primorsky District of Saint Petersburg, where they believe the organizer of a "crypto-for-cash" operation resides. This operation follows a similar raid in Moscow in late September, where police targeted a travel agency suspected of fronting a $2.2 million illegal crypto exchange.

In Russia, crypto exchanges lack legal status, and the government suspects many firms of facilitating illegal cross-border transfers. The masterminds behind these operations are now facing charges related to organized crime, illegal banking activities, and the illegal circulation of payment instruments.