Russian Central Bank Warns Public of Rising Crypto-themed Financial Scams.

The bank identified 5,735 entities engaging in illegal activities, including financial pyramids. Despite the surge in such projects, the bank noted that the lifespan of scam projects has shortened, resulting in less financial damage to victims on average.

Russian Central Bank Warns Public of Rising Crypto-themed Financial Scams.

The Russian Central Bank recently warned about the increasing prevalence of financial scams with crypto-related elements. According to their official release, there was a significant rise of almost 16% in financial scams in 2023, with almost all having a crypto theme.

The bank highlighted the growing number of illegal participants in the financial market utilizing crypto themes. In 2022, half of the pseudo-investment projects involved cryptocurrencies, while in 2023, nearly all pyramid schemes and illegal brokers were offering crypto-related investments or accepting cryptocurrency payments.

The bank identified 5,735 entities engaging in illegal activities, including financial pyramids. Despite the surge in such projects, the bank noted that the lifespan of scam projects has shortened, resulting in less financial damage to victims on average.

To combat these scams, the bank blocked access to over 11,200 web pages belonging to illegal financial market participants and pyramid operators. They also initiated over 125 criminal cases against suspected financial scammers who utilized crypto themes and 620 administrative cases.

Additionally, the bank is collaborating with the Federal Antimonopoly Service and Roskomnadzor, the national censorship body, to address these issues. Their public list of suspected financial scams includes social media chatrooms, crypto-related games, bogus exchanges, crypto trading bot scams, and firms operating crypto mining-themed scams.

In January, the Russian Central Bank cautioned the public to beware of a prominent crypto scam linked to the TV series “The Boy’s Word: Blood on the Asphalt.” The bank’s efforts aim to protect the public from falling victim to these fraudulent schemes that exploit the rising popularity of cryptocurrencies in financial markets.

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