pexels tima miroshnichenko 5912673Russia and its economic deficit reached a new panorama after the leading pyramid companies in the country were involved with cryptos. Hackers are reportedly taking advantage of current trending points and blockades imposed on the territory due to the war with Ukraine.
Crypto trading represented a solution for the Russians going through an economic crisis. The ruble is reported to be weighted at 1.5 cents after experiencing an over 50 percent drop in price.
Merchants avoid economic blockades with pyramid schemes
As the largest country globally, Russia sees an increase in pyramid schemes to benefit the nation’s most prominent merchants. Several pyramid companies would be working from the country after the war with Ukraine broke out. This is partly due to the economic blockades they have experienced in the national territory.
According to the director of the Bank of Russia’s Department for Combating Unfair Practices, Lyakh Tass, the crypto industry has taken a very different course in serving fraudulent companies. Lyakh indicates that crypto fraud has increased by 50 percent since 2022.
Lyakh indicates that cyber hackers take advantage of the misinformation that the citizens have about cryptos to commit fraud. Pyramid companies promise investors the most profitable way to protect their funds by purchasing shares abroad. However, these projects are never true, so the investor loses his money.
Economic blocks motivate to trade with cryptos
While pyramid companies have been on the rise in Russia, legitimate crypto businesses are. Moody’s, a credit agency, indicates that Russians use cryptos to avoid being economically affected by blockades from the US or other countries. Crypto operations have been more frequent in the country by citizens and small companies seeking the protection of their funds.
But crypto frauds from Russia have gained power from “Finiko Ponzi,” a company that stole much money between 2019 and last year. Russian officials recently busted the Finiko group and were charged with various fraud and money laundering charges.
Crypto fraud among Russians could end after the country’s economy stabilizes, which will not happen in a short time. However, the national authority will arrest those involved in illegal acts and thus be able to stop this operation that only discredits the virtual market.
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