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Russian Crypto Scammers Go Offline, Open Offices, Central Bank Concerned About Trend – Bitcoin News
A growing number of financial and crypto pyramids targeting Russian investors have opened physical offices in the country. The Russian central bank has recently expressed concern over the trend, which is seen as an indication that fraudsters are anticipating rising demand.
Russian crypto scams launch offices to lure more investors in person, Bank of Russia says
Financial pyramids and illegal currency traders in Russia, many of which now specialize in offering crypto investments and settlement opportunities, are moving offline, the daily Izvestia reported citing the Central Bank of the Russian Federation (CBR).
For the first time in recent years, the organizers of such scams are opening offices where they try to convince potential victims to invest in virtual money or suggest services to bypass foreign sanctions and state restrictions. Personal contact is always more effective for that purpose, say experts.
They also warn that sharing information with dubious platforms often leads to the loss of funds, either fiat or crypto. The trend of going offline indicates that fraudsters are preparing for a greater demand as Russians’ access to global financial assets has become extremely problematic, the report notes.
Sanctions imposed by the West over Moscow’s invasion of Ukraine and currency restrictions imposed in response by Russian authorities have increased interest in cryptoassets. Many Russians have bought bitcoin (BTC) or other cryptocurrencies and stablecoins to protect their funds from government measures or to transfer them abroad.
Crypto fraud is increasing due to sanctions and restrictions
According to data collected by the Bank of Russia, financial pyramids have become much more active this year. In the first half of 2022, the regulator identified 954 such entities, compared to just 146 in the same period last year. That is more than a sixfold increase.
The number of those offering investments in real or fake cryptocurrencies has also continued to grow. More than half of the registered fraud schemes (56%, or 537 entities) raised funds in various digital assets or advertised investments in such.
Russia’s monetary authority believes fraudsters are taking advantage of the radically changed operations of traditional financial institutions as a result of the sanctions affecting international settlements and investments in foreign assets.
The CBR recently eased some of its restrictions on access to foreign fiat for Russian citizens, allowing banks to increase access to US dollar and euro cash to the public. It is still unclear how the change will affect interest in crypto, which according to a recent survey is still relatively high in Russia.
Do you expect the number of crypto pyramid schemes to continue to grow in Russia? Share your thoughts on the topic in the comments section below.
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