Russia Tightens Grip on Crypto—New Law Declares Bitcoin ’Property’ for Seizure

Moscow’s latest power play turns digital gold into government-controlled assets.

The Kremlin’s Crypto Cash Grab

Russia just weaponized property law—Bitcoin now falls under the same seizure framework as real estate or yachts. The move lets authorities freeze wallets faster than oligarchs can say ’offshore account.’

Cold Storage Gets Colder

Exchanges and miners face immediate fallout. Any platform holding Russian IP addresses must now comply with court-ordered confiscations—no more ’lost private keys’ excuses.

Bankers 1, Anarchists 0

Another win for financial surveillance. The bill’s fine print even allows ’voluntary forfeiture’—because nothing says ’consent’ like avoiding a gulag. Meanwhile, Wall Street quietly applauds while shorting BTC futures.

Russians are increasingly turning to crypto for crime

The proposed changes to seizure procedures come in response to the growing use of crypto by criminals in Russia. Authorities have cited the sale of drugs through anonymous darknet markets, often facilitated by crypto transactions, as a key concern.

Fedorov acknowledged the unique challenges of seizing crypto assets and explained why such assets appeal to bad actors.

“The attractiveness of this type of asset for criminals is explained by a number of factors, primarily anonymity and the lack of centralized control. Digital currency cannot be physically seized and placed in a safe, as is the case with cash and valuables,” Fedorov explained.

One example is Russia’s darknet market Kraken, which has seen a 68% increase in crypto transactions. This comes despite a global crackdown on darknet platforms, including the shutdown of another Russian-based marketplace, Hydra, in April 2022. Since Hydra’s closure, Kraken, not to be confused with the regulated crypto exchange of the same name, has become the largest darknet market in Russia.