Bank of Russia: 16% of online pyramid schemes offer cryptocurrency investments

More than 45% of the pyramid schemes identified by the Bank of Russia in 2020 operated online. Some of them offered investments in cryptocurrencies, the Bank of Russia said.

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In 2020, the Bank of Russia identified more than 1,500 organizations with signs of illicit activity: 222 financial pyramids, 395 illegal forex dealers and over 800 illegal lenders: https://t.co/y8G2TiXBj9 pic.twitter.com/SXadEpSbok

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— Bank of Russia (@bank_of_russia) February 10, 2021

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In total in 2020 the regulator identified 222 financial pyramids. Of the pyramids operating online, 16% offered investments in cryptocurrencies, said Valery Lyakh, head of the Bank of Russia’s Department for Combating Unfair Practices.

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He also stressed that criminals often lure funds into supposedly future or little-known cryptocurrencies, while investment projects in Bitcoin have diminished. At the same time, settlements often occur precisely in Bitcoin, noted Lyakh.

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During the first nine months of 2020, the Bank of Russia identified more than a thousand illegally operating entities in the financial market.

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