Crypto-Related Lawsuits Rising in Russia, Criminal Cases Increase by 40% – Bitcoin News

A new survey has revealed that Russian courts are receiving increasing numbers of cases involving crypto assets. About two-thirds of them have been launched under provisions of the country’s Criminal Code but civil cases represent a large share as well.

Close to 1,000 Criminal Cases in Russia Concerning Cryptocurrency.

Russia has seen an increase in lawsuits related to cryptocurrency and digital asset exchange. The total number of such suits reached 1,531 last year. According to research done by RTM Group cybersecurity, the number was reported by Izvestia.

954 out of those cases (the majority) were initiated by the Russian Criminal Code. The article details that another quarter (365) of these proceedings are civil, nearly one in ten (141), are bankruptcy cases and 5% (71) administrative cases.

The authors of the study note that most often cryptocurrency appears in criminal cases related to drug trafficking as those behind such deals would like their payments to remain anonymous — 738 such cases were filed last year. Another criminal proceeding involves the laundering illicit funds with digital coins.

The majority (42) of civil disputes involve claims against the unjust enrichment of crypto transactions. It is common for a person to transfer money to someone else to purchase crypto, and then later get a lower amount than it was agreed or expected.

The researchers found that in 2021 the number bankruptcy cases stemming from cryptocurrency ownership has more than doubled. The Russian judiciary considers crypto assets property in these proceedings. Each side must produce documents to prove their ownership.

Russia’s civil offense for illegal use of electricity in cryptocurrency mining involves the collection and repayment of all debt. In nine cases, Russians operating underground mining operations had to pay $61.5 million (more than $1.1 million) during the period under review.

RTM reviewed published acts by courts of general and arbitral jurisdictions to prepare the report. It also analyzed information from official correspondence from various departments. Its findings are available as Moscow authorities continue to discuss the legal status that cryptocurrencies in Russia should be given.

Are you expecting court cases in Russia involving cryptocurrency to grow in the near future? Let us know your thoughts in the comment section.

Lubomir Tassav

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.