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Crypto Exchanges to Avoid if You Are Russian: Risks, Scams, and Legal Consequences

Dec, 30 2025

Crypto Exchanges to Avoid if You Are Russian: Risks, Scams, and Legal Consequences
  • By: Tamsin Quellary
  • 0 Comments
  • Cryptocurrency

If you're in Russia and thinking about using a crypto exchange, you need to know this: not all platforms are safe. Some aren't just risky-they're legal time bombs. In 2025, Russian authorities have cracked down hard on unlicensed crypto platforms, and the consequences aren't just financial. They can be criminal. The exchanges you might think are convenient-fast, easy, no paperwork-are often the same ones linked to money laundering, ransomware, and international sanctions evasion. And if you use them, you’re not just losing money. You could be walking into a police investigation.

Why Russian Crypto Users Are Being Targeted

Russia doesn’t ban owning cryptocurrency. You can hold Bitcoin, Ethereum, or USDT without breaking the law. But using crypto to pay for things inside Russia? That’s illegal. The Bank of Russia has been clear: no digital currency for everyday purchases. What’s allowed is cross-border trade under a narrow experimental regime-only for businesses with over 6 million rubles in assets and full licensing.

But here’s the problem: most regular users don’t qualify for that. So they turn to unlicensed exchanges that promise quick transfers, no ID checks, and no questions asked. These platforms aren’t just operating in a gray area-they’re actively helping people bypass capital controls. And the Russian government is no longer turning a blind eye.

In October 2024, security services raided over a dozen locations across Russia. They seized more than $10 million in cash, 100 million rubles, and 200,000 euros. The targets? Not just exchange operators. Users too. Police were tracing bank transfers linked to crypto deposits. If your account sent money to a flagged exchange-even once-you could be questioned. Some people were arrested just for transferring 50,000 rubles.

The Exchanges You Must Avoid

There are three names you need to remember: Garantex, Exved, and Grinex. These aren’t just shady platforms. They’re sanctioned by the U.S. Treasury and actively hunted by international law enforcement.

Garantex was one of Russia’s biggest crypto exchanges before it was officially designated by OFAC in April 2022. The U.S. government accused it of processing over $500 million in illicit transactions-including payments to ransomware groups like Hive and 12 major darknet markets. Chainalysis confirmed 68% of its volume was tied to crime.

After Garantex was shut down, its team didn’t disappear. They rebranded. Enter Exved and Grinex. Same founders. Same team. Same infrastructure. Exved, for example, is run by Sergey Mendeleev, the original architect behind Garantex. It’s based in Moscow’s International Business Center but uses shell companies in Hong Kong to move money through Russian banks like Alfa-Bank. It’s not a crypto exchange-it’s a cryptolaundromat.

Grinex, its successor, operates mostly through Telegram. You sign up with just your phone number. No passport. No address. No KYC. That’s not convenience. That’s a red flag screaming at you.

These platforms don’t just take your money. They take your freedom.

How These Exchanges Work (And Why They’re Dangerous)

Here’s the typical flow:

  1. You deposit rubles into a bank account linked to a Hong Kong-based company like Feilian Limited.
  2. The company converts your rubles into USDT or Bitcoin.
  3. The crypto is sent overseas-often to exchanges in the UAE, Georgia, or Thailand.
  4. You receive foreign currency or crypto in return.
It looks simple. But here’s what you’re not seeing:

- Your bank transfer is flagged by Rosfinmonitoring as suspicious. - The exchange doesn’t report your activity to Russian authorities-because it’s not licensed. - If you try to withdraw later, your account gets frozen. No warning. No explanation. - If Russian police trace the transaction back to you, you’re investigated under Article 193.1 of the Criminal Code-for illegal currency transactions.

That’s not a fine. That’s up to seven years in prison.

Three sinister crypto exchanges as puppet masters pulling strings of Russian users.

Real Stories: People Who Lost Everything

On Russian forums like Dvach and RuTracker, hundreds of users have posted about losing their funds.

One user, 'CryptoPatriot_88', deposited 1.2 million rubles into Garantex in February 2025. In March, the platform vanished. No response to emails. No customer service. Just silence. He lost everything.

Another user on RuTracker reported losing 850,000 rubles through Exved. He tried to withdraw after a week. His account was locked. He was told to wait. Then the platform went offline. He later found out the CEO had fled to Turkey.

Trustpilot reviews for Grinex average 1.2 out of 5 stars. Common complaints: “No withdrawals after depositing,” “Account frozen without reason,” “They disappeared after I sent my passport.”

These aren’t isolated cases. Over 278 documented losses were reported on RuTracker by October 2025. Average loss per case? 850,000 rubles. That’s over $9,000 USD.

Why “Fast and Easy” Is a Trap

Licensed exchanges in Russia take 2-3 days to verify you. They ask for ID, proof of address, and income documents. It’s a hassle.

Unlicensed exchanges? You can be signed up in 5 minutes. Just your phone number. No questions. That’s the bait.

But speed here doesn’t mean convenience. It means risk. These platforms process transactions 30-40% faster than compliant ones-not because they’re better, but because they ignore anti-money laundering rules entirely. That’s why they’re used by criminals.

And here’s the kicker: Russian banks are now sharing crypto transaction data with international agencies like FATF. If you used one of these exchanges, your banking history is already in the hands of U.S. and European investigators.

What Happens If You’re Caught?

The Russian Ministry of Finance has made it clear: if you use an unlicensed exchange, you have no legal protection. No recourse. No refunds. No appeal.

If you’re caught:

- Your bank accounts may be frozen.

- You could be summoned for questioning by Rosfinmonitoring or police.

- You may face criminal charges under Article 193.1-fines up to 1 million rubles or jail time.

- Your passport could be flagged, preventing future international travel.

- You might be added to a domestic sanctions list, blocking you from opening any bank account in Russia.

There’s no “first offense” exception. If your transaction is linked to a sanctioned entity like Garantex or Exved, you’re treated as a participant in the scheme-even if you didn’t know the details.

A user being arrested for using an unlicensed crypto platform, money burning behind him.

What Should You Do Instead?

If you need to trade crypto, stick to licensed platforms operating under Russia’s experimental regime. There are only about 12 of them. They’re not for casual users. They’re for businesses with high asset thresholds and full compliance.

For individuals? Your safest option is to avoid Russian-based crypto exchanges entirely. Use international platforms like Kraken or Coinbase-but only if you’re not using Russian bank accounts to fund them. If you’re depositing rubles, you’re still at risk.

The truth is simple: if an exchange promises “no paperwork,” “fast withdrawals,” or “sanction-proof transfers,” it’s not helping you. It’s setting you up.

The Future Is Getting Tighter

Russia’s State Duma is working on a new bill that would make using unlicensed crypto exchanges a criminal offense. Draft No. 45876-8, introduced in September 2025, proposes fines of up to 1 million rubles for first-time offenders.

International pressure isn’t slowing down either. The U.S. Department of State is offering up to $5 million for information leading to the arrest of Garantex’s former executives. Russian authorities are cooperating more than ever with global agencies.

By mid-2026, experts predict 90% of users will stop using these platforms. The remaining 10%? They’ll be the ones still using Telegram-based exchanges like MKAN Coin-thinking they’re safe because the app is encrypted. They’re wrong. Russian authorities have tools to trace wallet addresses. And they’re already using them.

Bottom Line

Crypto isn’t illegal in Russia. But using the wrong exchange? That’s a one-way ticket to serious trouble. Garantex, Exved, Grinex-these names aren’t just warnings. They’re red flags with consequences you can’t undo.

If you’ve used one of them before, stop now. Don’t deposit more. Don’t try to withdraw. Document everything. Talk to a lawyer if you’re worried.

If you’re thinking about using one? Walk away. The speed and ease aren’t worth your freedom, your money, or your future.

Tags: crypto exchanges Russia banned crypto platforms Garantex Exved Russian crypto risks sanctioned crypto exchanges

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