Russian pyramid scheme operators have turned to crypto en masse, warns Moscow

Two-thirds of Russian financial pyramid scheme operators use crypto, the country’s central bank says, with citizens sending Bitcoin and other tokens to over 4,600 criminal group-owned crypto wallets.

The central bank says it identified 7,087 financial pyramids, pseudo-brokers, and other fraudulent schemes last year. The bank says 80% of these pyramids operated online, with the majority using crypto and money mules.

“Most of the illegal projects [...] had no offices and interacted with potential clients via social media and chat apps, or by phone. They most often used cryptocurrency to raise funds,” bank officials wrote.

Crypto adoption is on the rise in Russia, as is crypto-related crime. The finance ministry says Russians spend $648 million on crypto every day, and is fast-tracking regulations that could soon see overseas exchanges blocked.

Blocking orders

Nearly 1,500 firms offered would-be clients bogus crypto investments last year, said the bank. And 84% of scammers used crypto to raise funds last year, up from 77% in 2024.

The bank said it had ordered the blocking of 21,500 web pages and social media posts associated with crypto scammers and other financial fraud operators.

Fraudsters “choose cryptocurrencies because tokens allow them to maintain anonymity and avoid punishment,” the central bank wrote.

The bank has previously vowed to bolster its monitoring of the crypto market and step up its public fight against crypto-powered fraud.

Officials said they would continue efforts to identify increasingly sophisticated financial pyramids and online schemes.

The central bank warned the public that only permit-holding firms have the right to publicly offer investments to Russian retail investors.

Crypto market movers

• Bitcoin is up 3.8% over the past 24 hours, and is trading for $66,566.
• Ethereum is up by over 6% over the same period, trading at $1,990.

What we’re reading

• Bitcoin, Ethereum ‘pumping hard’ after Iran strikes, but states brace for financial fallout— DL News
• Bitcoin price shows ‘absurd strength’ as ETF investors continue to hold the asset, analysts say — DL News
• Morgan Stanley files for bank charter to custody crypto — DL News
• Ethereum 3.0 — coming in 2029 — Milk Road
• You may not care about crypto, but you could be voting for it – USA Today

Tim Alper is a News Correspondent at DL News. Got a tip? Email him at tdalper@dlnews.com.