According to a recent report from the country’s Central Bank, cryptocurrency scams have reached new heights in Russia. In 2022, around half of all fraudulent investment projects used cryptocurrencies to lure victims. However, the situation worsened dramatically in 2023.
The report stated that in 2023, almost all pyramid schemes and illegal brokerages mainly used cryptocurrencies to execute fraudulent activities. With the crypto market in Russia projected to reach $2.8 billion annually by 2028, criminals have seized the opportunity to exploit unaware investors.
This comes shortly after President Putin signed off on a digital ruble law in July 2023. A survey found over a third of Russians remain skeptical of the centralized digital currency due to fraud concerns. The risks have also seen major crypto firm Binance exit Russia in September 2023. They sold their business to local exchange CommEX as they looked to refocus efforts on other markets.
Some Russian politicians believe blockchain-enabled central bank digital currencies could make traditional banks outdated. However, with crypto scams surging, ordinary Russians seem increasingly cautious of the rapidly developing digital asset sector.
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