Russia’s interior ministry has made it clear that they will pursue those who provide money-laundering services for crypto fraudsters. These people are also known as “droppers strong” and will be subject to criminal liability.
Russia’s Law Enforcement Targets Crypto Fraudsters
The Ministry of Internal Affairs of the Russian Federation ( MVD) as well as other security agencies hope to bring criminal liability to citizens who provide assistance to scammers who exploit the popularity of cryptocurrency investments.
According to Bits.media, law enforcement officials have noticed a rise in demand for “droppers,” people who can help crypto fraudsters launder illegally acquired funds.
Dropper is someone who accepts illicit funds to their bank accounts or crypto wallets. The person can then purchase cryptocurrency, split it between multiple wallets or withdraw it.
These people play a part in fraud schemes that allow organizers to cash out stolen funds. While some droppers might not be aware they are participating in illegal activities, that doesn’t mean they will not be held responsible in Russia.
Roman Bubnov (deputy head for procedural and departmental control at MVD’s Investigative Division) admitted that authorities are looking to make such actions criminally liable. Droppers could be sentenced to between four and seven year imprisonment if that happens.
Jamali Kuliyev, from Yukov and Partners, stated that the interior ministry would define the activity as an individual offense with all the consequences. He pointed out that this would allow Russian courts the ability to impose maximum sentences.
Russia has yet to fully regulate its crypto-space. New legislation is expected to be passed this fall. A top official of the Russian central bank revealed in May that cryptocurrencies were involved in more than half of all financial pyramids uncovered during the first quarter.
A bill that would penalize the unauthorised issuance of digital assets was presented to the State Duma (the lower house of the Russian parliament) in June. Anatoly Aksakov, Chairman of the Financial Market Committee, filed the draft law. He is also involved with the regulation of crypto transactions in Russia.