86% of Russian Pyramid Schemes Target Victims’ Cryptocurrency

The Central Bank of Russia (CBR) reports a staggering 86% of financial pyramid schemes now targeting victims’ cryptocurrency, marking a significant rise from last year and highlighting the growing threat to crypto investors in Russia.

• 86% of Russian pyramid schemes target crypto
• CBR reported 56% rise in suspected illegal activities
• Over 5,200 scam websites shut down

The Scale of the Problem

The CBR identified a 56% surge in entities suspected of illegal financial activities in Q1 2025, totaling 2,780 entities. Of these, 1,638 were classified as financial pyramid schemes, which are fraudulent investment operations promising high returns with little risk. These schemes prey on new investors to pay returns to earlier ones, often collapsing when new funds dry up.

In the crypto space, these digital thieves exploit the anonymity and unclear rules surrounding cryptocurrencies to lure victims with promises of doubling their Bitcoin investment in weeks. The schemes predominantly operate online, using social media to reach potential victims. Interestingly, there’s a reported 20% decrease in financial pyramid schemes from Q4 2024 to Q1 2025, indicating a complex landscape where overall illegal activities might be on the rise, but specific types of fraud fluctuate.

Central Bank’s Fight Against Scams

The CBR has been proactive, taking down over 5,200 websites linked to these scams and initiating over 120 administrative cases in the first three months of the year. Russia’s internet watchdog, Roskomnadzor, has also stepped up, blocking access to crypto-related websites like BestChange.ru, a leading exchange data aggregator. The reasons for such actions remain murky, with BestChange.ru suggesting it might be due to new regulations or issues with entities using its service.

The CBR uses an Internet monitoring system to identify and block fraudulent resources, showcasing a technological battle against these scams. Yet, the adaptability of these schemes, leveraging the latest digital technologies and social media, poses a significant challenge.

Regulatory Challenges

The CBR opposes the free circulation of cryptocurrencies in Russia, wary of the potential risks they pose to investors. However, the bank is working on a state-controlled crypto exchange for “super-qualified investors,” or highly experienced investors meeting specific regulatory criteria. This move reflects Russia’s attempt to harness the potential of cryptocurrencies while mitigating risks.

Additionally, Russia is exploring the development of a national stablecoin, aligning with global trends towards stablecoin usage. This could reduce reliance on foreign assets, especially in the context of international sanctions.

The Future of Crypto in Russia

As advocates of decentralization, freedom, and effective accelerationism, we recognize the immense potential of cryptocurrencies to disrupt traditional financial systems. However, the prevalence of scams in Russia serves as a stark reminder of the dark side of this financial revolution. We must push for innovation and disruption while advocating for robust systems to protect the vulnerable.

The rise in these schemes coincides with global interest in cryptocurrencies, yet Russia’s regulatory environment adds unique challenges. The tension between the potential benefits of digital assets and the need for investor protection is palpable. Innovations in AI and machine learning could enhance the CBR’s monitoring efforts, illustrating the ongoing technological arms race between regulators and fraudsters.

Key Takeaways and Questions

• What percentage of Russian pyramid schemes target cryptocurrency?

  86% of Russian pyramid schemes target cryptocurrency, reflecting a significant increase from previous figures.

• How many entities did the Central Bank of Russia identify as suspected of illegal financial activities in Q1?

  The CBR identified 2,780 entities, though this figure requires further verification.

• What actions has the CBR taken against these pyramid schemes?

  The CBR has taken down over 5,200 websites and initiated over 120 administrative cases, demonstrating a robust response to these fraudulent activities.

• What is the CBR’s stance on the circulation of cryptocurrencies in Russia?

  The CBR opposes the free circulation of cryptocurrencies but is working on establishing a state-controlled crypto exchange for “super-qualified investors.”

• What other measures has the Russian government taken regarding crypto-related websites?

  Roskomnadzor has blocked access to crypto-related websites like BestChange.ru, though the reasons for such actions remain unclear and are under investigation by the affected platforms.

As we navigate this evolving landscape, the battle against financial pyramid schemes in Russia is far from over. The crypto community must remain vigilant, informed, and skeptical of promises that seem too good to be true. After all, in the world of crypto, the only thing more dangerous than a bear market is a scammer promising to make you rich overnight.