Surge in Crypto-Related Crimes in Russia

Russia has been grappling with a surge in crimes connected to crypto, according to the country’s Supreme Court.

At a recent meeting attended by President Vladimir Putin, Irina Podnosova, Chairperson of the Russian Supreme Court, stated that digital assets are increasingly central to criminal activities nationwide.

> “With the spread of cryptocurrency in the economy, there has been a rise in crimes where the digital currency is either the means of committing the crime, the criminal income, or the object of the offense,” Podnosova said at the annual meeting of judges of general jurisdiction, military, and arbitral tribunals.

The Supreme Court is reportedly preparing a legislative initiative to recognize crypto as property in criminal cases.

Economic Fallout from Illegal Crypto Mining

Russia is confronting the economic fallout from illegal crypto mining, which continues to plague the country’s energy sector. Russian power company Rosseti Group revealed that illegal mining activities have caused over $14 million in damages to the power grid in 2024 alone, according to state-owned news agency TASS.

The most affected regions include the North Caucasus, Novosibirsk, and Volga, where mining operations are straining the national grid and damaging industrial and household equipment.

The Russian government has implemented seasonal mining bans in several regions, with these restrictions set to last until 2031. These measures, alongside proposals for a national registry of mining equipment, aim to curb the proliferation of illegal operations.

Authorities are also considering imposing stricter penalties, including criminal charges and fines, to deter offenders and protect critical infrastructure.

Russia’s Complex Relationship with Crypto

Despite its crackdown on illicit crypto activities, Russia’s complex relationship with crypto is becoming more evident. While it enforces tougher regulations against internal crypto crime, the country is simultaneously embracing crypto to evade Western sanctions. According to a recent report by blockchain analytics platform Chainalysis, Russia’s illicit crypto activities continue to thrive as new non-compliant exchanges rapidly emerge to replace those shut down by authorities.