Financial Pyramid Schemes in Russia Are Targeting Crypto Investors, with 86% of Schemes Aimed at Crypto Funds

Russia’s financial watchdog has reported a sharp rise in pyramid schemes, with a growing focus on cryptocurrency-based fraud. https://www.coinlive.com/news/russia-to-roll-out-national-crypto-exchange-for-elite-investors

According to new data from the Central Bank of the Russian Federation (CBR), 86% of pyramid schemes identified in the first quarter of 2025 were soliciting investor contributions in crypto—a significant increase from 59% in July 2024.

The CBR flagged 2,780 entities for suspected illegal activity in the financial sector, marking a 56% jump compared to the same period last year.

Of these, 1,638 showed characteristics typical of pyramid schemes, while 897 were masquerading as licensed securities market participants and 236 as lenders:

“Traditionally, pseudo-investment internet projects that act as financial pyramids or illegal brokers are in the lead.”

Fraudsters behind these operations frequently set up temporary websites, Telegram groups, and social media pages to attract victims, often promising fixed returns with minimal upfront investment.

These schemes typically present themselves as low-risk alternatives—comparable to bank deposits—and are promoted across social media platforms, sometimes even by bloggers and influencers.

The central bank emphasized that these scams often exploit trending investment themes, including digital assets, precious metals, and real estate, to build credibility and lure victims.

By leveraging the allure of cryptocurrency and the promise of quick gains, these schemes continue to pose a growing risk to Russian investors.

Crypto Assets Are a Top Target for Scammers' Investment Schemes

Scammers in Russia are increasingly luring investors with elaborate fake opportunities, including overseas real estate investments in popular destinations like Bali.

These schemes promised returns not only from rental income but also from commissions tied to new investor referrals—a classic hallmark of financial pyramids.

Many of these operations targeted Russians with offers to invest in cryptocurrencies, digital assets, precious metals, commodities, and niche ventures like power bank rentals, all under the guise of quick and lucrative returns.

According to the CBR, most illegal securities firms operated online with no physical offices, often posing as forex dealers.

A significant number also provided leveraged crypto trading services without the required licenses.

These platforms typically offered high-risk financial products under the radar of regulatory oversight.

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.”

In response, the CBR has taken down more than 5,200 websites linked to pyramid schemes in the first quarter of the year alone and launched over 120 administrative cases.

The regulator has also intensified efforts to curb the advertising of these fraudulent ventures.

The central bank remains a vocal critic of integrating cryptocurrencies into the broader Russian economy.

In March, it proposed creating a controlled legal sandbox for crypto operations and is working with the finance ministry to launch a state-operated crypto exchange.

Meanwhile, broader regulatory measures have also impacted legitimate crypto platforms.

In April, Russia’s internet watchdog Roskomnadzor blocked access to BestChange.ru, the country’s most prominent crypto exchange aggregator, further tightening the environment for digital assets.