An employee of an unknown cryptocurrency exchange was arrested in the Moscow region – Bits Media

Law enforcement agencies of the Russian Federation detained and took into custody an employee of an unnamed cryptocurrency exchange. Large sums of cash and cryptocurrencies were confiscated from him.

Representative of the Ministry of Internal Affairs of the Russian Federation Irina Volk
reports the first case in Russia criminal prosecution for embezzlement of cryptocurrency exchange property. The press release says, that one of the owners of an unnamed cryptocurrency exchange withdrew users’ money for the purpose of appropriating and using it for their own interests. Neither the name of the person arrested, no name of the exchange is reported.

During his detention by joint forces of the Ministry of Internal Affairs and the FSB at a hotel at a private airfield in the Moscow region, the police discovered more than 190 million rubles, hidden in two travel suitcases. During further investigation, the suspect and his accomplices in Moscow, St. Petersburg, Novosibirsk and Yalta were seized 50 million rubles, $1 million, 70 000 euro, cryptocurrency wallets, computer equipment and luxury goods.

The press center of the Ministry of Internal Affairs clarified, that the detainee was responsible on the site for transactions of particularly large amounts in cryptocurrencies and placed digital assets on cryptocurrency wallets. Taking advantage of access to cryptocurrency wallets, the suspect withdrew some of the users’ assets to their wallets and, probably, was about to leave the country.

Law enforcement agencies charged the detainee and took him into custody. Besides, his bank account was seized, and a petition was sent to the court to seize the property of the accused, the cost of which exceeds 2 billion rubles. The Investigation Department of the Ministry of Internal Affairs reported, that a criminal case has been initiated against the suspect regarding 4 Articles 160 UK RF.

Several versions have appeared in the community about, who is actually arrested. It could be, eg, owner of one of the Moscow exchange offices, engaged in the exchange of cryptocurrencies for cash. A version was also expressed about Exmo, one of the largest exchanges with Russian roots.

“The EXMO cryptocurrency exchange has nothing to do with this news story. The founders of the exchange are not located in the Russian Federation, therefore the assumptions are not true. EXMO Exchange continues to provide stable services and ensure the security of buying and selling digital assets for more than 2 million users from all over the world", – comments Maria Stankevich, Business Development Director EXMO.

Sergey Mendeleev, famous for his scandalous, although not always confirmed, investigations,
declares, that Sergei Bilyuchenko has been arrested, administrator of the closed 2018 year of the WEX exchange. But, taking into account the circumstances of the arrest and the passage of time, and this version does not look the most plausible.

Recently, the Russian Ministry of Internal Affairs for the Khabarovsk Territory announced the opening of the first criminal case regarding the theft of electricity for cryptocurrency mining. Damage from illegal mining activities is estimated at 2.7 million rubles. At the end of last year, Chairman of the Investigative Committee of the Russian Federation Alexander Bastrykin said, that it is necessary to enshrine the concept of cryptocurrencies in the Criminal Code, so that investigators can work more efficiently.