There has been a “significant” increase in the number of Fraud crypto exchange targeting the russians And Russian-speaking crypto traders have been detected, a new report has found.
Per KommersantExperts have observed a “significant increase” in the number of “small” [Russian-language] crypto exchanges, some of which turned out to be bogus.”
InformZashitae, a Russian security firm, reported that “unscrupulous exchange”-linked crypto transactions had “increased one and a half times” in recent weeks. The firm said the number of such exchanges “keeps growing.”
A firm named Positive Technologies claimed that according to data from March 2023, the number of fraudulent crypto exchanges had increased x3 in the span of a year.
The report also found that “fake crypto exchange aggregators” were also “proliferating.”
Dmitry Stepanin, head of crypto exchange Satyoshkin, was quoted as saying that BestChange clones were “being created specifically to advertise fake exchanges.”
Rise Of Fraudulent Russian Crypto Exchanges – What’s The Rise?
Experts claimed the trend was “connected to an increase in crypto-fiat transaction volumes” in Russia – with many Russians looking for crypto-powered ways to escape economic sanctions.
Oleg Ogienko, head of government relations at crypto mining firm BitRiver, was quoted as explaining:
“It is natural that in any market that undergoes explosive growth – such as cryptocurrencies – all kinds of scammers become active.”
Crypto industry insiders claimed that “only legalization” of crypto-related activities in Russia could put an end to the rise in fake exchanges.
Ogenko suggested that crypto exchanges could initially operate in a government-controlled “experimental legal regime” – often referred to as a sandbox.
politicians have suggested Launching a government-run crypto exchange could answer. But anti-crypto central bank appears to reject this idea.
A bill on the regulation of crypto was presented to the State Duma in November last year.
But the draft law has failed to make any headway in the Russian parliament because of deep divisions between the central bank, law enforcement agencies and pro-industry ministries. MPs say they will Try again with a revised bill later this month.