HomeCryptocurrencyBitcoinRussian Authorities Arrest Three Men for Large-Scale Illegal Bitcoin Sales

Russian Authorities Arrest Three Men for Large-Scale Illegal Bitcoin Sales


Russian authorities arrested three men in September 2017 for their alleged involvement in the large-scale “illegal” sale of the digital currency Bitcoin over the past few years. The arrested individuals were being investigated for processing a high volume of trades without a license and for not paying taxes on their profits.

Based on a report by the Vedomosti newspaper, the three men have allegedly traded more than 500 million Russian rubles worth of Bitcoin without securing a license to do so. The authorities are reportedly in the process of building a criminal case against the “illegal” Bitcoin sellers.

How the men were arrested

According to the investigators, they noticed unusual activity in bank accounts linked to about 300 bank cards and SIM cards. They claim that all of the monitored trades have links to Bitcoin activity. Some money from the trades was allegedly transferred into bank accounts owned by family members of the arrested individuals.

State of digital currencies in Russia

The Russian government is increasing its efforts to scrutinize activities involving digital currencies due to their growing popularity. The aim of the investigations is to prevent tax evasion related to digital currencies. The arrest of the three Bitcoin sellers is viewed as a first step in the revitalized effort by authorities to bring tax evaders to justice.

In previous years, Russian authorities launched campaigns to ban Bitcoin exchanges and websites where the cryptocurrency can be converted to rubles. The authorities, however, have failed to file criminal charges to the operators and participants in said exchanges despite having the information about them in hand. The case filed against the three sellers is the first Bitcoin-related one in the country so far.


Cyprus registers Binance as a cryptocurrency service provider.

Binance, a cryptocurrency exchange, will be able to provide services for virtual currencies in Cyprus as a result of the platform's recent registration with the...

More than 24,000 ATMs in Brazil will offer USDT through Tether and Smartpay.

Usdt, the largest dollar-pegged stablecoin on the market, was created by Tether, a company. Tether recently announced that more than 24,000 ATMs in Brazil will...

To solve the blockchain modularity issue, Celestia raises $55 million.

The project Celestia, which seeks to address the alleged centralization issue in the current monolithic blockchains, has announced the completion of its most recent funding...

Hong Kong considers removing the “Professional Investor-Only Requirement” and allowing retail investors to trade cryptocurrency.

Securities and Futures Commission (SFC) of Hong Kong's director of licensing and head of the fintech division both confirmed that the regulator is taking into...

Follow us


Most Popular