Bank AI

Silk Road

Tornado Cash

Tornado

<p class="is-style-lead">The Central Bank of Russia has disclosed that nearly half of the financial fraud schemes within the country in the previous year leveraged cryptocurrency and foreign currencies for payments.</p>
<p>Notably, the central bank made this disclosure in a <a href="https://www.cbr.ru/analytics/inside/2023_2/" target="_blank" rel="noopener noreferrer nofollow">report</a> detailing the surge of scams in the country and outlining strategic measures to combat the ongoing escalation. The report affirms the identification of 5,735 entities involved in fraudulent activities in 2023.</p>
<p>According to the central bank, this figure represents a 15.5% increase from the number of scam schemes recorded in 2022, which amounted to 4,964. Nonetheless, despite the growing prevalence of these schemes, they have continued to last for shorter periods of time, and losses associated with them have dwindled.</p>
<p>Of the 5,735 scams, 2,944 of them involved financial pyramid schemes, up from 2,017 in 2022. The central bank further confirmed that cryptocurrencies and foreign currencies were the preferred payment method for pyramid scams, accounting for 45% of payments.</p>
<p>Data reveals that nearly 1,500 scam schemes, representing 26% of the total scam schemes, used cryptocurrency for donations in an attempt to leverage the nature of blockchain for <a href="https://crypto.news/indian-state-police-to-use-blockchain-to-protect-informants-anonymity/" rel="noopener noreferrer nofollow">absolute anonymity</a>, a pattern that has prevailed since the inception of Bitcoin (<a href="https://crypto.news/price/bitcoin/" rel="noopener noreferrer nofollow">BTC</a>).</p>
<p>You might also like: <a href="https://crypto.news/changpeng-zhaos-criminal-sentencing-postponed-to-late-april/" rel="noopener noreferrer nofollow"> Changpeng Zhao’s criminal sentencing postponed to late April </a></p>
<h2 class="wp-block-heading" id="growing-concerns-around-anonymity">Growing concerns around anonymity</h2>
<p>Numerous world leaders critical of cryptocurrencies attribute their disapproval to the heightened anonymity facilitated by blockchain. While many have argued that crypto is not as anonymous as perceived, the use of <a href="https://crypto.news/glossary/coin-mixer/" rel="noopener noreferrer nofollow">crypto mixers</a> like <a href="https://crypto.news/crypto-mixer-tornado-cash-laundered-over-550m-in-2023-despite-sanctions/" rel="noopener noreferrer nofollow">Tornado Cash</a> has only exacerbated these concerns.</p>
<p>In February 2018, Microsoft founder Bill Gates <a href="https://www.google.com/amp/s/www.forbes.com/sites/ktorpey/2018/02/27/bill-gates-i-dont-think-bitcoins-anonymity-is-a-good-thing/amp/" target="_blank" rel="noopener noreferrer nofollow">remarked</a> on the level of anonymity that cryptocurrency offers in an AMA session on Reddit. The billionaire contended that cryptocurrency’s anonymity is not particularly a “good thing,” as it makes it difficult for law enforcement to track criminals.</p>
<p>Moreover, in March 2022, the president of the European Central Bank, Christine Lagarde <a href="https://www.bloomberg.com/news/articles/2022-03-22/ecb-s-lagarde-says-cryptos-being-used-to-evade-russian-sanctions" target="_blank" rel="noopener noreferrer nofollow">claimed</a> Russia was leveraging cryptocurrencies to evade Western sanctions. Members of the defunct black market <a href="https://crypto.news/silk-road-drug-lord-forfeits-150m-in-deas-largest-ever-crypto-seizure/" rel="noopener noreferrer nofollow">Silk Road</a> also looked to Bitcoin for transactions for increased anonymity.</p>
<p>Despite these multiple use cases and the escalating concerns, several crypto industry leaders have <a href="https://www.chainalysis.com/blog/2022-crypto-crime-report-preview-cryptocurrency-money-laundering/" target="_blank" rel="noopener noreferrer nofollow">argued</a> that the use of fiat currencies as tools for financial crimes is also prevalent. Former ex-CEO Changpeng Zhao argued last year that Bitcoin is traceable, while cash is not.&nbsp;</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Bitcoin is traceable.<br><br>Cash is not.<br><br>🤷‍♂️</p>— CZ 🔶 BNB (@cz_binance) <a href="https://twitter.com/cz_binance/status/1697908180909425116?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">September 2, 2023</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>Read more: <a href="https://crypto.news/bitcoin-surpasses-the-50k-mark-positive-sentiment-growing/" rel="noopener noreferrer nofollow"> Bitcoin surpasses the $50k mark, positive sentiment growing </a></p>

Russian Central Bank: nearly half of all financial scams in Russia last year involved crypto

Table of Contents

crypto.news

Other articles published on Feb 13, 2024

Digital Currency Group Records $210 Million in Q4 2023 Revenue

Why is the Crypto Community Buzzing Over Coinbase’s New Ad?

Bitcoin Hits $50,000 For The First Time Since 2021

CoinShares Records $42 Million Revenue in Q4 2023 – Crypto Adoption Rising?

Ripple announces acquisition of standard custody and trust company

Shiba Inu: Node Provider Unveils Guide to Shibarium Token Integration for Apps and Exchanges

Join our free newsletter for daily crypto updates!