An overwhelming majority of financial pyramid schemes operating in Russia target investors’ crypto funds, according to new data released by the country’s central bank.
The Russian monetary authority has registered a spike in the number of fraudulent players offering fake investment opportunities involving digital assets, precious metals, and real estate.
Fraudsters urge investors to send their cryptocurrency
The Central Bank of the Russian Federation (CBR) has identified 2,780 entities suspected of illegal activities in the financial sector during the first quarter of the year, highlighting a 56% increase over the same period of 2024.
More than half of them, 1,638, bear the characteristics of financial pyramid schemes, the regulator unveiled in a post on Telegram this week, quoted by the business news portal RBC on Tuesday.
The rest have been posing either as professional participants in the securities market (897) or lenders (236), the authority detailed, elaborating:
“Traditionally, pseudo-investment internet projects that act as financial pyramids or illegal brokers are in the lead.”
As usual, the fraudsters launch multiple websites, social media pages, and Telegram groups to lure unsuspecting victims. Most of these channels exist only temporarily and seek minimal initial investments, the bank pointed out.
Nearly all detected Ponzi schemes operated as online platforms offering Russians to put money into various investment plans with a promised fixed return. They often tried to convince people that their products were almost as secure as a bank deposit.
The projects were advertised on social media networks and non-financial sites. They were sometimes promoted by bloggers as well, the CBR noted.
The great majority of the pyramid schemes, 86% of the identified platforms, suggested investors should make their contributions in cryptocurrency, the regulator revealed. Last July, it put the share of pyramids attracting funds through crypto at 59%, RBC recalled.
Crypto assets among scammers’ favorite investment offers
The fake opportunities presented by the scammers included offers to invest in real estate, often abroad, in attractive destinations such as the popular Indonesian island resort of Bali. Besides income from rented-out property, they also promised a portion of the money spent by newly attracted investors.
Many of the financial pyramid schemes enticed Russian citizens to invest in various cryptocurrencies and other digital assets, precious metals, commodities, and different businesses, offering quick returns. A few of the projects had less common proposals, such as investments in power bank rentals.
Most of the illegal securities firms were acting as forex dealers, the central bank remarked, and many of them allegedly supported leveraged crypto trading, providing services without the mandatory license. Practically all operated online and had no official offices.
Bank of Russia provided more details:
“Pseudo-forex projects lure with promises of high earnings and are aimed at those who perceive trading on the foreign exchange market as a game of chance that does not require special knowledge.”
A total of more than 5,200 websites of pyramid schemes have been taken down in the first three months of the year, and over 120 administrative cases have been initiated, the CBR emphasized. The bank has taken other measures as well, including to prevent advertising of such projects.
The Central Bank of Russia has been a strong opponent to allowing cryptocurrencies to freely circulate in the Russian economy. In March the financial authority suggested the establishment of a special “experimental” legal regime for crypto operations and is currently working with the finance ministry on the launch of a state-controlled crypto exchange.
Besides online pyramid schemes, Russian authorities have been restricting legitimate crypto-related websites. In April, Russia’s internet watchdog, Roskomnadzor, blocked access to the leading exchange data aggregator in the Russian crypto market, BestChange.ru.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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