Russia uncovers 1,000 crypto frauds in 2025, exposing rising scams, 20M victims, and urgent need for tighter regulation.

Russia’s financial watchdog has uncovered more than 1,000 fraud schemes involving crypto in the first half of 2025. This reflects a sharp rise in digital fraud targeting retail investors and unregulated markets.

Crypto Frauds Surge 1.4x in Russia, Says Central Bank

According to a recent report by the Bank of Russia, illegal investment projects increased by 1.4 times as compared to the same period the previous year, 2024. Most of these operations were constructed based on rapid and guaranteed earnings using crypto assets, with citizens as the target audience via online services, such as Telegram channels and social media pages in particular.

More than 80 percent of these pyramid schemes were operating with cryptocurrencies as the primary means of payment. The report reveals that there has been a considerable change in crime preferences because crypto was only used in 59 percent of scams in 2021. This pattern will highlight the concerns about the increasing popularity of digital currencies among fraudsters and the population in general.

There were a lot of fraudulent platforms that emulated cryptocurrency exchanges, creating the impression of legitimate trading environments. Scammers first posted fake platforms online for a short time. Then, they quickly removed them to avoid being traced. As a result, it became difficult to recover the stolen funds. Moreover, they wrote messages that matched current economic concerns. They often tricked people by mentioning fear of inflation and distrust in foreign markets.

Simultaneously, regulators raised the red flag of a growing number of illegal microfinance services offering loans in the form of cryptocurrencies. Other lenders paid out in USDT (Tether), and debts have been computed in rubles, making it legally questionable. Other sources of concern over consumer protection in digital lending have been reports of aggressive debt collection methods.

Crypto Frauds Hit 20 Million Users in Russia

The Central Bank’s monitoring system found over 1,800 crypto wallets linked to illegal financial schemes. Authorities placed these wallets under supervision. Police and financial institutions now have access to the data. This helps support investigations and ensure compliance.

Related Reading: Russians Use Kyrgyz Crypto Channels to Evade Sanctions, Says TRM Labs 

Authorities blocked over 11,200 websites involved in illegal financial services. These platforms reached an estimated 20 million users. This shows how widespread the fraud has become. Banks also took action against more than 600 payment methods. They targeted online wallets and crypto addresses. These steps were part of stronger anti-money laundering controls.

There were more than 240 administrative cases that were initiated on the basis of violations of financial legislation, and more than 300 regulatory actions that were taken to fight the spread of such fraud. Bank of Russia has also reminded people about the importance of vigilance in the interest of users to check the licensing of the financial institution prior to investment.

With the increasing popularity of digital currencies in the mainstream, regulatory agencies around the world are under increasing pressure to impose more monitoring and educational efforts. The situation in Russia in 2025 is a vivid illustration of the danger associated with the unregulated wing of the crypto economy.

The discovery of 1,000 crypto scams in Russia at the beginning of 2025 underscores the significant increase in Internet fraud. As the misuse of crypto skyrockets, regulators have an increasing challenge. Greater regulation and consumer education are essential to safeguarding investors and curbing illegal schemes in the changing digital economy.