Russian Cryptocurrency Exchange Beribit Faces Turmoil Amidst Threat of Government Ban
Amidst escalating tensions surrounding a recent raid on the premises of crypto exchange Beribit by Russian authorities, coupled with internal financial discrepancies and subsequent client protests, a wave of uncertainty grips the cryptocurrency landscape in Russia.
The turmoil began with reports of a raid by Russian authorities on the premises of crypto exchange Beribit in late March, reportedly linked to the Crocus City Hall terrorist incident.
Subsequently, Beribit, a licensed exchange in Russia, revealed via Telegram that discrepancies in financial records were discovered during a leadership transition, prompting the initiation of an audit.
Tensions escalated when more than fifty Beribit clients occupied the exchange’s offices, demanding the return of over $4 million in funds, as reported by a Russian news outlet. Social media videos depicted customers receiving chocolates instead, with assurances that deposits would be resolved within 1-15 days.
According to the report, Beribit staff attempted to exit through a rear exit but were intercepted by enraged customers, leading to police intervention.
Beribit later claimed to be processing withdrawals, with the initial round of payments already disbursed to clients, although another source suggested that only clients who had filed police reports received funds.
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In a separate development, lawmakers in the Russian State Duma introduced a bill proposing a ban on cryptocurrency exchanges in the country, while permitting registered crypto transactions and mining firms. Additionally, the bill seeks to prohibit cryptocurrency advertising.
However, another legislator argued against the ban, citing potential adverse effects on Russia’s national security interests.
Cryptocurrency serves as a means to procure weapons and other defense equipment from non-Western sources, circumventing sanctions and other restrictions, the report stated.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
