Russian Crypto Fraudsters Go Offline, Open Offices, Central Bank Worried About Trend – Bitcoin News

An increasing number of financial and crypto pyramids targeting Russian investors are opening physical offices in the country. The Central Bank of Russia has recently expressed concern over the trend that fraudsters are expecting increasing demand.

Russian crypto scams have launched offices to lure more investors in person, the Bank of Russia has said.

Financial pyramids and illegal forex traders in Russia, many of which are now operating offline, offering crypto investment and settlement opportunities, Daily Izvestia reported, citing the Central Bank of the Russian Federation (CBR).

For the first time in recent years, the organizers of such scams are opening offices where they can suggest services to convince potential victims to invest in virtual currency or bypass foreign sanctions and government restrictions. Meeting in person is always more effective for that purpose, say experts.

They also warn that sharing information with dubious platforms often results in fiat or crypto financial losses. The trend of going offline suggests that Russians’ access to global financial resources is becoming increasingly critical, and fraudsters are preparing for a bigger demand, the report said.

Western sanctions and foreign exchange restrictions imposed by Russian authorities in response to Moscow’s invasion of Ukraine have boosted demand for crypto assets. Many Russians have been buying bitcoin (BTC) or other cryptocurrencies and stablecoins to protect their money from government measures or to transfer it abroad.

Due to restrictions and restrictions, crypto fraud is on the rise.

According to the data compiled by the Bank of Russia, financial pyramids have become very active this year. In the year In the first half of 2022, the regulator identified 954 such entities, compared to only 146 in the same period last year. This is a more than six-fold increase.

The number of people offering investments in real or fake cryptocurrencies also continues to grow. More than half of the registered fraud schemes (56% or 537 entities) raised funds in various digital assets or advertised investments in them.

The Russian monetary authority believes that fraudsters will use traditional financial institutions in a radically changed form due to sanctions imposed on international settlements and investments in foreign resources.

The CBR recently eased restrictions on access to foreign fiat for Russian citizens, allowing banks to increase the supply of US dollar and euro cash to the public. It is not yet clear how the change will affect the interest in crypto, which according to a recent study is relatively high in Russia.

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Do you expect the number of crypto pyramid schemes in Russia to continue to grow? Share your thoughts on the topic in the comment section below.

Lubomir Tasev

Lubomir Tasev is a tech-savvy Eastern European journalist who likes Hitchens’ quote, “Being a writer is not what I do, but what I am.” Apart from crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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