The Russian crypto community has been rocked by a high-profile police raid on Mosca, a prominent cash-to-crypto exchange located in the Moscow International Business Center. The raid comes as the government considers a nationwide cash-to-crypto ban, prompting fresh debate over the future of decentralised finance in Russia.
The incident, which occurred on April 23, has raised serious questions about regulation, user safety, and the fate of crypto platforms that rely on direct cash transactions. Mosca, which allows customers to convert up to 100,000 USDT in cash daily, confirmed the police visit but denied any direct involvement in the alleged fraud.
“Law enforcement agencies have carried out a standard procedure of checking our customer data,” said Dmitry Titarenko, Mosca’s development head, during the Blockchain Forum 2025 in Moscow.
Fraud Scandal Fuels Push for Cash-to-Crypto Ban
The raid is reportedly linked to an ongoing investigation involving the theft of more than 421 million Russian rubles (approximately $5.1 million). The victim, Olga Serova, a former adviser to the governor of Samara, is believed to have fallen prey to a sophisticated crypto fraud scheme in late 2024.
According to reports from local media outlet Baza, at least seven individuals have been arrested in connection with the scam. The cash-to-crypto route allegedly used in the crime has intensified calls to implement a cash-to-crypto ban to protect vulnerable citizens from exploitation.
Evgeny Masharov, a member of Russia’s Civic Chamber, has urged lawmakers to crack down on physical cash transactions for cryptocurrency purchases.
“A cash-to-crypto ban would be a massive blow to fraudsters,” Masharov claimed. “Phone scammers frequently use crypto exchangers to withdraw illicitly obtained funds.”
Mosca Denies Direct Ties to Fraud Case
While Mosca confirmed the raid, the company insists it has not been officially linked to the fraud case involving Serova. Titarenko stated that the customer involved might not even be associated with the Serova incident.
“Maybe it was another client,” he said. “This was the first criminal-case-related raid we’ve had in the last three months.”
Olga Serova, a former adviser to the head of the government of Samara region, claims to have lost up to $5 million to crypto fraudsters. Credit: Baza
He also stressed that Mosca has been enhancing its Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols. The platform now maintains a blacklist of suspicious wallets and has increased transparency to mitigate risk.
Despite mounting regulatory pressure and increased scrutiny, Mosca remains a major player in the Russian crypto scene. At the recent Blockchain Life event—its first return to Moscow since 2021—Mosca secured two centre stands and was named the “best crypto exchange service” at the conference.
A Threat to Crypto Freedom?
The broader crypto community in Russia has expressed concern over the potential fallout of a cash-to-crypto ban. Sergey Mendeleev, a well-known crypto entrepreneur and speaker at Blockchain Forum 2025, warned that such measures could signal the government’s retreat from crypto adoption altogether.
“Banning cash-to-crypto would be a step backwards for innovation,” said Mendeleev. “We should be focusing on stronger regulations—not outright bans.”
He also noted that police raids are not uncommon in Moscow City, where many crypto operations—including Garantex—are headquartered. Garantex had previously been forced to halt trading after $27 million in USDT was frozen by Tether due to sanctions.
Cash-to-Crypto Ban: Protection or Overreach?
As Russia continues to grapple with the dual challenges of digital innovation and financial crime, the debate over a cash-to-crypto ban remains highly divisive. Proponents argue it will help crack down on scams and illicit transactions, while critics warn it could stifle the country’s growing Web3 sector.
For now, Mosca remains under the spotlight—but not under formal charges. Whether the platform will survive mounting pressure amid the looming cash-to-crypto ban remains to be seen. Stay glued to The Bit Gazette for the latest crypto news and expert analysis.
Sunderland-born crypto enthusiast, cycling fanatic, and wordsmith. As co-founder and lead editor of The Bit Gazette, Mark combines his passion for blockchain with a knack for breaking down complex stories into engaging content. When he's not tracking the latest crypto trends, you'll find him on two wheels—exploring backroads or clocking miles on his favorite cycling routes. Dedicated to delivering sharp, insightful journalism in the fast-moving world of digital assets.
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