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Two separate crypto stories broke this week, one involving a major law enforcement crackdown in Moscow, the other a quiet retreat by Donald Trump’s media company from a multibillion-dollar crypto partnership.
FSB Targets Unregistered Exchanges in Moscow
Russia’s Federal Security Service says it raided nine unregistered crypto exchange services operating out of the Moscow International Business Center, detaining more than 20 people in connection with an alleged money laundering scheme. According to the agency’s Friday statement, the exchanges were allegedly converting stolen funds from Russian phone scam victims into cryptocurrency, then routing that crypto to accounts tied to Ukraine-based handlers.
The operation, a joint effort between the FSB and Russia’s Interior Ministry, uncovered what authorities describe as a recruitment pipeline built around young couriers. Officials said individuals aged 18 to 25 were used to physically collect cash from scam victims before delivering it to the exchanges for conversion. The FSB claims many of those recruited to work at the exchanges came from Russian regions and had limited financial literacy, suggesting the network specifically targeted vulnerable young people to staff its operations.
The Interior Ministry has opened a criminal investigation into large-scale fraud, a charge that carries up to 10 years in prison under Russian law. Authorities say they’re still working to identify victims and determine what compensation, if any, might be possible.
Also Read: Trump May Have to Sell Crypto Holdings Under CLARITY Act Ethics Rules
Trump Media Steps Back From Crypto.com Partnership
Separately, Trump Media and Technology Group is walking away from a planned deal with Crypto.com, choosing instead to pursue a merger with energy company TAE. The move, first reported by Axios, was confirmed by TMTG interim CEO Kevin McGurn, who said the company is exiting two agreements: a $6.4 billion CRO token treasury plan and an effort to bring prediction markets to Truth Social.
TMTG first announced the CRO treasury deal in September 2025, with plans for President Trump’s company to buy billions in Crypto.com’s CRO tokens and potentially reward Truth Social users with crypto. That was followed by an October announcement introducing Truth Predict, a prediction markets feature. Both parties, along with SPAC partner Yorkville Acquisition Corp, cited shifting market conditions and business priorities as reasons for scrapping the arrangement.
Why It Matters
McGurn reportedly downplayed any regulatory motivation behind the reversal, framing it instead as a competitive business decision. Still, the timing draws attention given ongoing pressure from lawmakers pushing for ethics safeguards in crypto market structure legislation, aimed at addressing potential conflicts of interest tied to the Trump family’s digital asset holdings.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
