In Russia, in 2023, the number of legal disputes related to cryptocurrency increased by 72% compared to 2022 to 2,653, the press service of the Moscow Digital School educational platform in the field of digital and business law reported.
"In 2023, the number of legal disputes related to cryptocurrencies in Russia increased by 72% compared to the previous year, reaching 2,653. More than half of all legal proceedings in the field of cryptocurrencies were related to bankruptcy disputes. In 2023, the number of such disputes was 1,646, which is 91% more than a year earlier. In addition, the number of civil cases related to cryptocurrencies also increased by 60%, criminal cases − 34%, administrative cases-19%," the study by the EBR law firm and the Moscow Digital School says.
The increase in the number of lawsuits related to cryptocurrency in 2022-2023 is due to the development of the crypto economy in the country and the increased interest of society and business in this industry. In addition, this is due to the growing popularity of using cryptocurrencies for payments among criminals.
As Dmitry Kirillov, a teacher of the Moscow Digital School educational platform, notes, criminal cases are primarily related to the use of cryptoassets in settlements related to drug trafficking. Banks actively fight against such operations in the framework of anti-money laundering legislation.
"The second group of criminal cases is related to the theft of crypto assets. Here, criminals either gain access to other people's crypto wallets and steal cryptocurrency, or receive crypto assets as ransom in the process of extortion, for example, for returning access to information blocked by an encryption virus. There are also cases of cryptocurrency pyramid schemes and scams," the expert notes.
Civil law disputes mostly come down to the return of funds invested in crypto projects. There are also disputes about the collection of debts by energy sales organizations for electricity consumed in the process of mining cryptocurrencies. Such cases are usually resolved in favor of power engineers, Kirillov emphasizes.
In Russia, over the past two years, the number of court cases related to cryptocurrency has increased fivefold, the press service notes.
"In 2023, the number of legal disputes related to cryptocurrencies in Russia increased by 72% compared to the previous year, reaching 2,653. More than half of all legal proceedings in the field of cryptocurrencies were related to bankruptcy disputes. In 2023, the number of such disputes was 1,646, which is 91% more than a year earlier. In addition, the number of civil cases related to cryptocurrencies also increased by 60%, criminal cases − 34%, administrative cases-19%," the study by the EBR law firm and the Moscow Digital School says.
The increase in the number of lawsuits related to cryptocurrency in 2022-2023 is due to the development of the crypto economy in the country and the increased interest of society and business in this industry. In addition, this is due to the growing popularity of using cryptocurrencies for payments among criminals.
As Dmitry Kirillov, a teacher of the Moscow Digital School educational platform, notes, criminal cases are primarily related to the use of cryptoassets in settlements related to drug trafficking. Banks actively fight against such operations in the framework of anti-money laundering legislation.
"The second group of criminal cases is related to the theft of crypto assets. Here, criminals either gain access to other people's crypto wallets and steal cryptocurrency, or receive crypto assets as ransom in the process of extortion, for example, for returning access to information blocked by an encryption virus. There are also cases of cryptocurrency pyramid schemes and scams," the expert notes.
Civil law disputes mostly come down to the return of funds invested in crypto projects. There are also disputes about the collection of debts by energy sales organizations for electricity consumed in the process of mining cryptocurrencies. Such cases are usually resolved in favor of power engineers, Kirillov emphasizes.
In Russia, over the past two years, the number of court cases related to cryptocurrency has increased fivefold, the press service notes.
