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Russians to get protection from crypto fraud

The Russian Association of Cryptoindustry and Blockchain (RACIB) developed a special service to protect investors from criminals in the cryptocurrency industry. The system will cooperate with the police, the Federal Security Service and Interpol, RBC reports. 

The new service will help investors who already lost their money as well as assess investment project participants to prevent potential crime.

Russia is one of the three countries with the largest number of attacks on cryptocurrency exchanges. Over the first six months of 2018, courts heard 45 cases involving digital money, which is three times more than the number of cases heard over the entire previous year. This means that within a year, the scope of fraud grew approximately six times. The damage caused by one specific company, Cashbery, is estimated at RUR 3 bio. WEX platform has withheld money of one million customers, experts note.

“This initiative can indeed help although right now the most important thing is that we are beginning to develop applicable legal framework and mechanisms to detect and counter fraud,” Murad Salikhov, Advisor to the Board Chairman of the Association “Financial Innovations”,” told Invest Foresight. “It is extremely difficult to estimate the number of victims because there is little transparency in the industry – and there was even less in the very beginning. At any rate, we are talking about thousands of people, especially those affected by cryptocurrency exchange collapses and attacks on the exchanges and hot wallets. We are not even counting numerous schemes of targeted fraud and theft.”

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