‘Western Agencies Using Crypto to Fund Spies in Russia,’ Lawmaker Claims

Spies and “agents” from Western countries are using crypto to fund their operations, a leading Russian lawmaker claimed.

Per News.ru, the comments came from Andrei Lugovoy, the First Deputy Chairman of the State Duma’s Committee on Security and Anti-Corruption, during a speech in parliament on February 20.

‘Spies Aren’t Idiots, they Use Crypto’ – Lawmaker

Lugovoy said that “cryptocurrency” is “the only way to refill the wallets of foreign agents.” He claimed these people were “instruments of soft power.”

The lawmaker claimed that these “agents” answered to “the US State Department and the British Foreign Ministry.” He added:

“These are sophisticated foreign agents. And we must understand that their activities are organized primarily by the intelligence services. […] They are not so idiotic that they would transfer money from an account in Geneva to Moscow. […] Cryptocurrency is now the only way to refill their wallets.”

Lugovoy repeated previous criticism about the government’s apparent inability to launch crypto regulation.

Such legislation, he said, could prevent spies and “foreign agents” from accessing crypto. He explained:

“Two years ago, on the initiative of our chairman, we created a [crypto regulation] working group. And what has happened since then?”

Crypto ‘Inaction:’ Russia’s Regulation ‘Stuck’

Earlier this month, Lugovoy called Russian crypto policy “bad to disgusting.” He chastised the government’s failure to create crypto regulation, and said:

“The lack of regulation in the cryptocurrency sector in Russia plays into the hands of [the West’s] sanctions policy against our country. It is undermining the anti-sanctions policies of the Russian government.”

In his earlier speech, he also hit out at the crypto working groups established in a bid to break through an impasse between top ministries, law enforcement agencies, and the crypto-skeptic Central Bank.

A Russian-Swedish national ran a crypto mixing service that served as a critical link in helping move tens of millions of dollars from darknet markets, a prosecutor alleged https://t.co/Q86xlGr1uW

— Bloomberg Crypto (@crypto) February 15, 2024

Lugavoy called for Russian authorities to identify “foreign agents and their relatives” and force them to “report annually on their income and expenses.”

The lawmaker said that many “foreign agents” in Russia have “apartments and dachas [countyside holiday homes].”

Lugovoy claimed these individuals “act under the direction of foreign intelligence services and embassies.”

He concluded that “foreign agents” are still allowed to move around Russia “unchecked.”