Police Raid on Russian Crypto Exchange Mosca Amid Growing Calls to Ban Cash-to-Crypto Transactions
Crackdown Comes as Russia Weighs Tighter Controls on Cryptocurrency Conversion
Moscow, Russia – April 25, 2025 – As Russian authorities deliberate over a potential ban on cash-to-crypto transactions, local crypto exchange Mosca has come under police scrutiny following a high-profile fraud investigation.
The raid on April 23 targeted Mosca’s office in the Moscow International Business Center and was part of a wider probe into a $5.1 million crypto-related fraud. According to Dmitry Titarenko, Mosca’s head of development, law enforcement officials were there to conduct a “standard procedure of checking customer data.”
Fraud Allegations Link Raid to Massive Crypto Scam
The operation coincided with reports that multiple Mosca users had been arrested in connection to a scheme where a 71-year-old former government adviser, Olga Serova, allegedly lost 421 million rubles (approximately $5.1 million) to crypto scammers.
While Titarenko said the platform could not confirm a direct link to the case, he acknowledged that “maybe it was another client,” distancing the company from involvement. He also emphasized that this was Mosca’s first criminal-case-related raid in three months.
Cash-to-Crypto in the Crosshairs
The raid happened just a day after Evgeny Masharov, a member of Russia’s Civic Chamber, proposed a full ban on accepting cash for crypto purchases. His concern? That crypto exchanges are being exploited by fraudsters and “phone scammers” to launder illicit funds.
Masharov’s proposal was positioned as a way to protect unsuspecting citizens from fraud by closing off a major channel for cash-to-crypto conversions—an activity Mosca specializes in. The exchange allows users to purchase up to 100,000 USDT in cash daily, a point now drawing scrutiny from regulators.
Mosca’s Defense: Compliance and Community Recognition
Titarenko insists Mosca is stepping up compliance efforts:
“We are strengthening Anti-Money Laundering (AML) and Know Your Customer (KYC) practices and keeping a blacklist of suspicious users.”
The raid, ironically, took place during Blockchain Life 2025, a major industry event where Mosca was a featured exhibitor and received recognition as the “Best Crypto Exchange Service.”
Concerns Grow Within the Crypto Community
Sergey Mendeleev, a well-known voice in Russia’s crypto space, spoke at the conference, calling the proposed ban on cash-to-crypto conversions an “alarming signal” that Russia may be backing away from crypto adoption altogether.
He noted that raids in Moscow City—home to many crypto service providers—have become increasingly common. Other exchanges like Garantex, which recently shut down after Tether froze $27 million in USDT, have also faced pressure.
What’s Next for Crypto in Russia?
With public officials sounding alarms and enforcement actions increasing, the future of cash-based crypto services in Russia hangs in the balance. For platforms like Mosca, the message is clear: regulatory scrutiny is intensifying, and compliance is no longer optional—it’s essential.
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