Russia Considers Jail Time for People Helping Crypto Scammers Launder Proceeds – Regulation Bitcoin News


Russia’s interior ministry has decided to pursue those who provide money laundering services to crypto fraudsters, suggesting they go to jail. The department wants to introduce criminal liability for the activities of these people, also known as “drippers”.

Law Enforcement in Russia Aims for Drops Engaged in Fraud Cryptographic Schemes

The Ministry of Internal Affairs of the Russian Federation (MVD) and other security agencies hope to introduce criminal liability for citizens providing assistance to scammers who exploit the popularity of cryptocurrency investments.

Law enforcement officials say they have seen a growing demand for the services of so-called “droplets” – people who are willing to help crypto fraudsters by laundering illegally obtained funds, Russian crypto news media reported.

A dropper is usually someone who has been offered to accept illegal funds into their bank account or cryptocurrency. The person can then buy a cryptocurrency, divide the amount between several wallets or withdraw the money.

These individuals play a role in fraudulent schemes that allow organizers to spend the stolen funds. Some drops may not even be aware that they are involved in illegal activity, but that doesn’t mean they won’t be held accountable in Russia.

Roman Bubnov, deputy head for departmental and procedural control at the MVD’s Investigative Section, confessed that the authorities want to introduce criminal responsibility for such actions. If that happens, drops can get between four and seven years in prison.

The Interior Ministry proposes to define the action as a separate crime, with all the following consequences, explained Jamali Kuliyev from the law firm Yukov and Partners. This would allow Russian courts to impose the maximum penalty, he pointed out.

Russia has yet to comprehensively regulate its crypto space, with new legislation expected to be adopted this fall. In early May, a senior official of the central bank revealed that more than half of all financial pyramids identified in the first quarter of this year were linked to cryptocurrencies.

In June, a bill introducing penalties for unauthorized issuance of digital financial assets was submitted to the State Duma, the lower house of the Russian parliament. The bill was presented by the Chairman of the Financial Markets Committee Anatoly Aksakov, who is also involved in the efforts to regulate crypto transactions in the country.

Tags in this story

Crime, Criminal Liability, cryptocurrencies, cryptocurrencies, cryptocurrencies, drips, fraudsters, internal ministry, law enforcement, money laundering, MVD, offense, prison, proposal, Russia, Russian, scammers, frauds, sentence

Do you expect Russian lawmakers to support the Interior Ministry’s proposal? Share your thoughts on the topic in the comments section below.

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Lubomir Tassev

Lubomir Tassev is a technology-savvy Eastern European journalist who likes Hitchens’ quote: “Being a writer is what I am, rather than what I do.” In addition to crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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