Russia is cracking down on crypto scammers, including those who help fraudsters launder their proceeds. Russia’s Interior Ministry is considering jail time for crypto fraudsters and those who support them. The ministry has proposed to the government to send the fraudsters and their accomplices to prison for their crimes if found guilty.
The department wants to submit the cryptocrime bill to the House of Representatives this year. The bill states that anyone willing to help crypto scammers to launder or hide money should be jailed.
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The term for someone who helps a crypto scammer to launder money is “droppers”. For the uninitiated, a “dropper” provides assistance to illicit funds and moves money into various bank accounts. The ‘dropper’ then distributes the money across different bank accounts and between many crypto wallets. The scammer then proceeds to withdraw the money from the bank accounts, making it look like other people are withdrawing their money.
The ‘droppers’ get a share of the illegal activity and usually remain underground until the next act. Reports state that the demand for “droppers” is increasing, and crypto scammers are paying significant sums to get the job done. The role of a ‘dropper’ in crypto scams in Russia was not covered by the law, but soon will be.
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What will be the jail sentence for crypto scammers and droppers in Russia?
The Russian Interior Ministry has yet to determine the jail term for droppers assisting crypto scammers. The bill would have to pass parliament and only then would a prison sentence be imposed. BitsMedia has reported that the ministry plans to define a “dropper” crime as a separate crime.
BitsMedia quoted Jamali Kuliyev, head of law firm Yukov and Partners, that the ministry will explain the consequences in detail. “This would allow Russian courts to impose the maximum penalty,” he said.