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Russian security authorities have arrested a man accused of supporting terrorism after he raised $6,500 in cryptocurrency, further intensifying efforts to track virtual asset funding.
According to DL News on February 16 (local time), Russia’s Federal Security Service (FSB) announced that it had detained a man from Kaspiysk in Dagestan on charges of supporting a terrorist organization. Authorities said the man lived in Turkey from October 2022 to October 2023, during which he posted cryptocurrency wallet addresses on social media and solicited donations, raising approximately $6,500 worth of digital assets.
The FSB claims the suspect transferred the collected funds to members of an illegal armed group, who allegedly used the money to purchase weapons, ammunition, and equipment. However, authorities did not disclose the specific organization involved. The man is currently in custody under investigation.
Russia has recently intensified its crackdown on fundraising activities involving cryptocurrencies. Moscow authorities previously stated that Russian citizens trade approximately $650 million per day on unregistered cryptocurrency platforms. They also noted that law enforcement agencies are using an in-house analytical system called “Transparent Blockchain,” developed by the country’s anti-money laundering agency, to trace crypto-based crimes and terrorism financing.
The FSB said it has been focusing on suppressing cryptocurrency-based fundraising since 2023 and has arrested multiple individuals on treason and other charges for donating digital assets to the Ukrainian military or pro-Ukraine armed groups. It added that around 300 people were detained last year in the North Caucasus region, which includes Dagestan, on terrorism-related charges.
Meanwhile, the Financial Action Task Force (FATF) recently warned in a report that cases of radical terrorist groups raising funds through cryptocurrencies via social media are increasing. Investigative authorities are reportedly strengthening measures to freeze wallets linked to terrorism by utilizing blockchain analysis tools.
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