Scammers seem to have increased their activity at a time when Russia is encircled by Western sanctions. Many Russian fraudsters pretend to be approved by foreign agencies to provide access to crypto assets. According to Russia’s central bank, the majority of financial pyramids in Russia employed cryptocurrency in some form or another.
Amid Western Sanctions, Russian Pyramids Capitalize on Crypto’s Popularity
According to a new research aimed at combating criminal actions in Russia’s financial system, more than 56% of pyramid schemes in the country’s Federation during the first half of 2022 solicited cash in different cryptocurrencies or offered crypto investments. A large number of organizations have been engaged in this kind of activity.
According to the Russian news outlet RBC, the sanctions placed by the West on Russia as a result of Russia’s war with Ukraine have dramatically impacted the operating circumstances for many legitimate financial institutions in the country, and scammers seem to have taken advantage of the situation.
While consumers were exploring alternative viable investment options, the Russians responded to this need with new financial pyramids. The Central Bank of Russia (CBR), the country’s monetary authority, noted that these financial pyramids had a brief lifetime and were mostly small-scale enterprises.
Discovery of frauds in the first quarter
The monetary authorities discovered a remarkably large number of similar frauds during the months of January 2022 and June 2022. There were almost 2,200 projects, businesses, and individual entrepreneurs throughout the nation that displayed symptoms of unlawful financial activities. As stated in the paper, this value is around three times that of the same month in 2021.