Russian Police Raid Unlicensed Crypto Exchange as Duma Mulls Ban on Crypto Trading
Russia’s Duma, the lower house of parliament, is set to consider legislation that would ban the trading of cryptocurrencies, amid a storm of controversy surrounding the collapse of domestic crypto exchange Beribit.
Beribit’s troubles began in late March, when Russian authorities raided the company’s offices over its alleged involvement in a terror attack at the Crocus City Hall.
Beribit, a licensed crypto exchange in Russia, later announced on Telegram, after a change of management, that it had discovered discrepancies in the company’s financial statements, and that an audit was required.
Tensions escalated, according to the news outlet Gazeta.Ru, when over 50 Beribit clients descended on the company’s offices and demanded the return of their funds, worth over $ 4 million. Videos circulating on social media showed clients being offered chocolate instead of cash, and promises of reimbursement within 1-15 days.
In a recent development, Beribit employees were allegedly caught trying to escape through a back door by angry clients, who called the police. Beribit claims to have processed and returned client funds. However, the exchange has reportedly only paid out to those who reported the incident to law enforcement.
The Duma is proposing legislation that would outright ban crypto exchanges in the country, amid the ongoing controversy. However, cryptocurrency transactions and mining operations registered with the government would still be permitted, should the bill pass into law. The bill would also ban the advertisement of cryptocurrencies.
