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Crypto-Related Lawsuits Rising in Russia, Criminal Cases Increase by 40%

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A new study has shown that the courts in Russia are considering an increasing number of cases related to crypto assets. About two-thirds of them are initiated under the provisions of the country’s Criminal Code, but civil cases also account for a large proportion.

There are about 1,000 criminal cases related to cryptocurrency in Russia in 2021

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Lawsuits related to cryptocurrencies, digital asset exchanges and coinage have increased significantly in Russia over the past year, reaching a total of 1,531. This figure comes from a study by cybersecurity company RTM Group and cited by Izvestia this week.

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Most of them, 954 cases, were initiated under various articles of the Criminal Code of the Russian Federation, the newspaper writes on Friday. Another quarter of proceedings, 365, are civil cases, almost one in ten (141) are bankruptcy cases, and 5% (71) are administrative cases, the article specifies.

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The authors of the study note that most often cryptocurrency appears in criminal cases related to drug trafficking, as those behind such transactions would like their payments to remain anonymous – 738 such cases were filed last year. Other criminal cases include laundering illegal means using digital coins.

Claims for unjust enrichment through crypto transactions make up the majority of civil law disputes (42 cases). A common scenario is when a person transfers money to a third party to buy cryptocurrency, but later receives a smaller amount than expected or agreed upon.

Meanwhile, the number of bankruptcy cases related to cryptocurrency holdings has doubled in 2021, researchers have found. In this proceeding, the Russian judiciary treats crypto assets as property, and the parties must provide documents proving that they own the coins.

The illegal use of electricity for cryptocurrency mining is considered a civil offense in Russia, which entails the collection of a debt. During the study period, Russians operating underground mining enterprises had to pay 61.5 million rubles (more than $1.1 million at the current exchange rate) in nine such cases.

In preparing the report, RTM analyzed published acts of courts of general jurisdiction and arbitration courts, as well as information obtained from official correspondence of various departments. The results of his research emerge as Moscow authorities continue to argue over the legal status of cryptocurrencies in Russia.

Do you expect the number of cryptocurrency-related court cases in Russia to increase in the future? Tell us in the comments section below.



Credit : news.bitcoin.com

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