Russian security services dismantled nine unregistered cryptocurrency exchange operations in Moscow’s financial district, detaining more than 20 people in a coordinated sweep that authorities say targeted a pipeline for laundering fraud proceeds. The Federal Security Service (FSB) and Interior Ministry carried out the raids in the Federation Vostok tower, one of Moscow City’s most recognizable skyscrapers, where the crypto offices had been operating alongside legitimate businesses.
The FSB alleged the exchanges served as conversion hubs for funds stolen through elaborate phone scams, many of which it attributed to call centers operating out of Ukraine. Scammers reportedly impersonated bank employees, police officers, and even FSB agents to trick victims into transferring rubles, which were then funneled through these crypto desks and moved offshore as digital assets.
The fraud pipeline
One investigation connected to the raids involved a single victim who lost 144 million rubles, roughly $2 million. In that case, scammers posed as FSB agents and convinced the individual to transfer funds through a crypto platform. Authorities have not disclosed total transaction volumes flowing through the nine shuttered operations.
