Russian court recognized cryptocurrency as a means of payment for the first time

The attackers received between seven and nine years in high security for stealing cash and digital assets

23.05.2022 - 08:40

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2 min

What’s new? The St. Petersburg City Court recognized 55 million Russian rubles (RUB) in digital currency as a means of payment in a trial. In 2018, the victim G.A. Shemet handed over 5 million RUB in cash and 55 million RUB worth of cryptocurrency to the attackers. At that time, the court took into account only 5 million RUB and noted that cryptocurrency “is not a means of payment within the Russian Federation, therefore it cannot be recognized as an object of civil rights and the subject of a crime.” This is reported by RBC.

RBC’s material

Details of the case. In 2018, convicted Petr Piron and MVD veteran Eugeny Prigozhin, posing as the Federal Security Service’s (FSB) officers, threatened criminal prosecution and extorted cash and digital assets from the victim G.A. Shemet. The attackers managed to obtain 55 million RUB in cryptocurrency and 5 million RUB in cash using threats. The Petrogradsky District Court sentenced Piron to nine years and Prigozhin to seven. The digital assets were initially disregarded, but the Third Appellate Court said that cryptocurrency was after all a means of payment on further appeal. The final verdict included 55 million RUB in cryptocurrency. The terms for those convicted have not changed.

What events happened before? In April, the district court in St. Petersburg for the first time allowed law enforcement agencies to seize the stolen cryptocurrency. The Investigative Committee blocked 24 addresses with 4 000 ETH which an attacker stole from an investor. Since the concept of cryptocurrencies is not enshrined in the law, it is marked as “other property” in the documents, but a request to seize such assets is permissible, the lawyers explained.

In May, the head of the Ministry of Industry and Trade of the Russian Federation Denis Manturov said that cryptocurrencies would be legalized as a means of payment in Russia. The minister did not specify exact dates, but noted that it “will happen sooner or later.”

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