At a time when Russia is surrounded by Western sanctions, it seems that scams have cranked up their activities. Many Russian scams offer access to crypto assets while claiming to be licensed by foreign authorities to do so. Russia’s central bank reported that the bulk of the financial pyramids in Russia used cryptocurrencies in one way or another.
Amid Western Sanctions, Russian Pyramids Make the Most of Popularity of Crypto
New report working towards countering illegal activities in Russia’s financial market reveals that more than 56% of the pyramid schemes in the country’s Federation during the first half of 2022 raised funds in various cryptocurrencies or advertised crypto investments. A very high number of entities have been involved in such activity.
Russian news agency RBC quoted that the sanctions imposed by the West on Russia because of Russia’s conflict with Ukraine have significantly changed the working conditions for many legal financial institutions within the country and fraudsters seem to have taken advantage of the situation.
While people were looking for other possible investment opportunities, the response to this demand by the Russians came in the form of new financial pyramids. The Central Bank of Russia (CBR), as the monetary authority of the country, explained that these financial pyramids had a short lifespan and were small-scale schemes for the most part.
Between the months of January 2022 and June 2022, the monetary authority was able to…
