Russia’s interior ministry has suggested that those who provide money laundering services to crypto-fraudsters be prosecuted. The department wants to introduce criminal liability for the activities of these people, also known as ‘droppers.’
Russia targets droppers involved in fraudulent crypto schemes
The Ministry of Internal Affairs of the Russian Federation and other security agencies hope to make citizens responsible for providing support to fraudsters who exploit the popularity of crypto investments.
Law enforcement officials say they have been registering a growing demand for the services of so-called “droppers” — people who are willing to help crypto fraudsters with laundering illegally obtained funds, Russian crypto news outlet Bits.media reported.
Dropper: Someone who is offered illicit funds in exchange for their account, or crypto wallet. They can buy cryptocurrency or split it between different wallets.
This group plays a part in fraud schemes that allow organizers cash out stolen funds. Some droppers may not even realize they are involved in an illegal activity, but that doesn’t mean they won’t be held accountable in Russia.
Roman Bubnov, deputy head for departmental and procedural control at MVD’s Investigative Department, admitted that the authorities want to introduce criminal liability for such actions. Droppers could be sentenced to between 4 and 7 years in prison if that occurs.
Jamali Kuliyev of Yukov and Partners explained that the interior ministry plans to treat the act as a separate offense and all associated consequences. According to him, this would permit Russian courts the ability to impose the maximum sentence.
Russia has yet to fully regulate the crypto sector. New legislation is expected to be passed this fall. A top official at the central bank revealed in May that cryptocurrencies were involved in more than 50% of financial pyramids he identified during the first quarter.
The State Duma was the Russian lower house and submitted a bill in June that imposed penalties on the unauthorised issuing of digital financial assets. Anatoly Aksakov (chairman of the Financial Market Committee), who was involved in the regulation of crypto transactions in Russia, filed the draft law.
Do you expect Russian lawmakers to support the interior ministry’s proposal? Please comment below with your views.
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