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Two teenagers from Russia have been apprehended during a crackdown on a suspected “money laundering” operation allegedly powered by cryptocurrency, a police source reported on May 14.
According to the news agency URA, a member of an unnamed “law enforcement agency” in the Khanty-Mansi Autonomous Okrug indicated that the teenage siblings “recruited other youths” in the area to participate in their scheme.
Russian Teens Operated ‘Crypto Exchange’ with ‘Organized Crime Group’
The source mentioned that some parents of the teenagers submitted a “statement” to local law enforcement in April.
The parents allegedly informed police that “an organized crime group” had “engaged their children” in what seems to be an illicit crypto exchange operation.
It appears that police were unaware of the operation prior to the tip-off, but they initiated an investigation shortly thereafter.
The source asserted that the two brothers provided fellow teenagers with “small financial incentives” for facilitating crypto-related transactions through their bank accounts.
One of the teenagers reportedly processed nearly $22,000 in crypto exchange-related transactions through his bank account over a two-month period, the source added.
This enabled the teen to accumulate cash amounting to approximately $4,400, which he “concealed under his pillow at home,” the source concluded.
The Khanty-Mansi Autonomous Okrug on a map of Russia. (Source: Stasyan117/Seryo93 [CC BY-SA 4.0])
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Federal Agency ‘Involved in Case’
The case has reportedly attracted the attention of the federal investigative body, the Investigative Committee of the Russian Federation.
Committee head Alexander Bastrykin has also personally “intervened,” according to the media outlet. It further noted that the regional branch of the committee is also “monitoring” the situation.
The media outlet stated that it had contacted the Khanty-Mansi Autonomous Okrug branch of the committee, which has yet to provide a comment on the issue.
Currently, crypto exchanges lack legal recognition in Russia. However, the nation’s anti-money laundering agency, Rosfinmonitoring, has urged Moscow to expedite the implementation of regulatory legislation.
Both the agency and law enforcement assert that cryptocurrency has become the preferred method for money launderers and criminals in Russia.
Russia’s April exports of crude and petroleum products hit five month low amid Ukrainian drone attacks, says the International Energy Agency https://t.co/k9t0yYeFF1
— Bloomberg (@business) May 15, 2024
Lawmakers are expected to discuss a significant piece of crypto-related legislation in the upcoming weeks.
The draft bill reportedly suggests a prohibition on all domestic crypto exchanges, with the exception of official sandbox operators.
The bill also proposes allowing energy companies to “target” home-based crypto miners and aims to legalize the industrial crypto mining sector.
The post Russian Teens Arrested for ‘Crypto-powered Money Laundering’ – Report appeared first on Cryptonews.
