Crypto Bribery: Russia Seeing an Increase in Cases

Russia is witnessing a significant increase in the number of crypto bribery cases. Legal experts have noted a growing trend where corrupt individuals receive payments in tokens such as Bitcoin (BTC).

Marina Odintsova, the head of the Kirov branch of the Association of Lawyers of Russia, shared these insights in an interview with Svoy Kirovsky Portal.

Odintsova revealed that there had been a noticeable rise in "non-cash" bribery in recent months. She listed cryptocurrency as the primary method when asked about the most common methods of transferring bribes in Russia. "We have recently seen cryptocurrency involved in bribery cases.

Cryptocurrency is the sector that is the least controlled by the state. And it is tough to track transfers made [using crypto]. However, it is not impossible," Odintsova stated.

She also highlighted a significant case to emphasize her point. "Currently, in the Moscow Oblast, courts are looking into the case of the largest bribe in modern Russian history. This case is also connected with cryptocurrency," Odintsova noted.

'Bitcoin Bribery' - A Landmark Case

Odintsova was referring to the case of two Russian army investigators. These investigators are believed to have demanded that a group of hackers pay them thousands of Bitcoin to bury their investigation. In June this year, a Moscow Oblast court announced that two Investigative Committee staffers are the "prime suspects" in a trial set to begin shortly.

Prosecutors allege that Russian law enforcement officials were investigating the domestic arm of an international cybercrime syndicate, Infraud Organization. Court documents claim that army Major Marat Tambiev demanded BTC 2,718 from the hackers.

Prosecutors say that Tambiev and another suspect promised not to confiscate some $159.6 million worth of crypto if the bribe was paid. The hackers reported the alleged bribe to the Federal Security Service. They were later found guilty of cybercrime offenses and were handed jail sentences of up to three years.

Bribes Handed Out Via 'Third Parties'

Odintsova explained that crypto bribes are also rising in less high-profile cases. She mentioned that non-cash transfers using crypto are often sent to bribe-takers wallets via third parties.

These third parties frequently include relatives, friends, and acquaintances, according to Odintsova. Alongside crypto, she named cash and property bribes as standard methods of closing corrupt deals.

Russian Central Bank's Response

While the rise of crypto bribery is a concern, the Russian Central Bank said it is pushing ahead with its fast-tracked Central Bank Digital Currency (CBDC) plans. It added that the second phase of its digital ruble project is in September.