Russia’s Interior Ministry has decided to pursue people who provide money laundering services to crypto fraudsters and suggested they should go to jail. The ministry wants to introduce criminal liability for the activities of these people, also known as “droppers.”
Russian law enforcement agencies target droppers involved in fraudulent crypto schemes
The Ministry of Internal Affairs of the Russian Federation (MVD) and other security agencies hope to introduce criminal liability for citizens who assist fraudsters who abuse the popularity of cryptocurrency investments.
Law enforcement officials say they are registering an increased demand for the services of so-called “droppers” (people willing to help crypto fraudsters launder illegally obtained funds), Russian crypto news outlet Bits.media reported.
A dropper is usually someone who is offered to accept illicit funds into their bank account or crypto wallet. That person can then purchase cryptocurrency, split the amount into multiple wallets, or withdraw the money.
These individuals play a role in fraudulent schemes that allow organizers to cash in stolen funds. Some droppers are unaware that they are involved in illegal activities, but that does not mean that they cannot be held accountable in Russia.
Roman Bubnov, deputy director in charge of departmental and procedural management at the MVD’s Investigation Department, admitted that the authorities would like to introduce criminal liability for such acts. If this happens, the dripster could face a prison sentence of four to seven years.
The Interior Ministry’s proposal would define the act as a separate crime, with all the consequences that entails, explained Jamali Kuliev of the law firm Yukov & Partners. This would allow Russian courts to impose the maximum penalty, he noted.
Russia has not yet comprehensively regulated the crypto space, and a new law will be adopted this fall; in early May, a top official of the Central Bank revealed that more than half of all financial pyramids identified in the first quarter of this year were related to cryptocurrencies.
In June, a bill introducing penalties for the illicit issuance of digital financial assets was submitted to the State Duma, the lower house of the Russian parliament. The bill was introduced by Anatoly Aksakov, chairman of the Financial Markets Committee, who is also involved in efforts to regulate crypto transactions in the country.
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