Skip to content

Russian Financial Pyramids Accept Digital Currencies as Investments

Illegitimate financial schemes are leveraging cryptocurrencies, according to the Bank of Russia's reports from the first quarter. Over 1600 suspected cases of financial pyramids were detected among the 2780 subjects exhibiting potentially illegal activities.

Russian Financial Pyramids Accept Digital Currencies as Investments

Crypto-Powered Financial Pyramids: A Growing Concern

The cat is out of the bag - financial pyramids, illegally operating in Russia, are now embracing cryptocurrencies. According to the Bank of Russia, a whopping 2780 subjects exhibiting signs of illegal activity were identified in Q1, with 1638 of them being financial pyramids.

But here's a twist - all these schemes pretend to be pseudo-investment internet projects, often hiding on social media and messengers. They lure investors with promises of fixed returns on various investment plans. And guess what? A whopping 86% of these dodgy operators prefer to collect your hard-earned cash in the form of cryptocurrencies!

Now, you might be wondering, what's the authorities' game plan against these scammers? Well, the Bank of Russia and the Ministry of Finance are taking steps to regulate cryptocurrency activities, but the specifics about combating financial pyramid schemes ain't spelled out yet.

That said, their broader strategy involves introducing a crypto exchange for "super-wealthy" investors under an experimental legal regime (ELR). This regulatory sandbox allows these high-rollers, with over 100 million rubles ($1.2 million) or an annual income of at least 50 million rubles ($602,000), to legally trade cryptocurrencies. But the question remains, will this crackdown on crypto-pyramids?

One silver lining is that by bringing crypto activities into a formal regulatory framework, authorities might find it easier to keep tabs on transactions and nab shady schemes. Compliance enforcement under the ELR could also help detect and prevent illicit activities. However, challenges remain, such as legalizing cryptocurrencies for domestic transactions and the influence of international sanctions on Russia's crypto regulations.

So, stay vigilant, folks. Don't let the allure of easy money blind you. Remember, if it sounds too good to be true, it probably is!

Moscow, Zoya Oskolkova

© 2025, RIA "Novy Day"

Investors should be wary as these crypto-powered financial pyramids, disguised as investment internet projects, are increasingly using cryptocurrencies for deceptive transactions. The Russian authorities are attempting to regulate cryptocurrency activities, but the specific measures to combat financial pyramid schemes are yet to be outlined.

Cryptocurrencies Used Extensively by Financial Pyramid Scheme Creators, Reveals Bank of Russia: In Q1 2022, a total of 2780 suspect entities showing indications of unlawful activity were detected, 1638 of which were identified as financial pyramids.

Read also:

    Latest