Russian Bailiffs Can Now Turn Criminals’ Bitcoin Into State Revenue

Russian bailiffs say they have developed new methods to help them convert Bitcoin (BTC) seized in criminal cases into cash for the Treasury.

In a video posted on the Federation Council’s RuTube page, Dmitry Aristov, the head of the Federal Bailiff Service (FSSP), called Bitcoin a “problematic asset.”

Russian Bailiffs’ Bitcoin Problem Solved?

Aristov made the remarks at a meeting of the Federation Council Committee on Constitutional Legislation and State Building.

The council, also known as the Russian Senate, is the upper house of the nation’s parliament.

Dmitry Aristov, the head of the Russian Federal Bailiff Service, speaking at the Federation Council. (Source: Federation Council/RuTube/Screenshot)

The FSSP is now working with “other relevant parties” on “mechanisms that will turn Bitcoin into state revenue.”

Aristov claimed that the FSSP can use legal precedent from a landmark criminal case to guide further actions.

He claimed that this allowed the FSSP to seize BTC (and, presumably, other cryptoassets). Now, he added, law enforcement agencies were “looking for a solution” to help them “sell” the coins.

The FSSP head was speaking in response to a question from a Senator. The lawmaker asked him about the service’s “protocols” for “confiscating cryptocurrencies.”

“We have a legal precedent, from a criminal case. During the investigation, we [confiscated] Bitcoin tokens.”

Dmitry Aristov, head of the Russian Federal Bailiff Service

However, Aristov said lawmakers needed to act. He claimed that a comprehensive “solution to the problem of confiscating cryptoassets” had not yet been finalized.

And he suggested that a comprehensive solution could remain out of reach until lawmakers roll out a bill outlining the legal status of BTC and other coins.

Aristov concluded that “first of all,” Moscow must “legislatively establish” the status of Bitcoin in Russia.

Senators at the Russian Federation Council. (Source: Federation Council/RuTube/Screenshot)A New Crypto Impasse?

After years of political impasse due to contrary positions on crypto regulations, Russia finally passed two pieces of important crypto-related law last year.

One legalized crypto mining as a recognized form of business activity. The other allowed Russian companies to use crypto as a payment tool in international trade, within the confines of a Central Bank-run sandbox.

However, most critics and many top lawmakers agree that far more needs to be done. A much older piece of legislation outlawed the use of crypto as a payment instrument within Russia.

The Central Bank has since signed off on a proposal to allow qualified investors to trade crypto within its sandbox.

But the bank favors more extreme measures. These include a total ban on crypto exchanges operating outside the sandbox, as well as a ban on retail sector and corporate crypto investment.

However, Moscow appears to be divided on the issue. Several ministries and most major industrial miners favor regulating crypto exchanges and crypto transactions over China-style bans.

As such, a new impasse appears to be standing in the way of the kind of legal clarity the FSSP would like to see.

The UK put Russia in the top tier of its new Foreign Influence Registration Scheme, meaning anyone working for the Russian state in Britain will need to declare their activity or face jail https://t.co/sFevGUE3D3

— Bloomberg (@business) April 1, 2025 Tambiev Case: Opening Legal Doors for Bailiffs?

The media outlet RBC appeared to suggest that Aristov may have been referring to the case of the former Russian Investigative Committee investigator Marat Tambiev.

The former Russian Investigative Committee investigator Marat Tambiev. (Source: TASS/Screenshot)

In 2024, Tambiev was convicted of taking Bitcoin bribes from an international fraud network. He was jailed for 16 years, with bailiffs confiscating BTC 1,032.

In January this year, the Russian Treasury said it had “begun the transfer” of the funds to its own coffers. The Treasury announced initial plans to “sell off” some $10 million worth of coins.

A key Kremlin negotiator is expected in Washington this week for talks with US President Donald Trump's administration, two sources familiar with the plan said, the most senior Russian official to visit since Moscow invaded Ukraine in 2022 https://t.co/rBUmuXaTiH

— Reuters (@Reuters) April 2, 2025

Tambiev, a District Court heard last year, took BTC from members of the Infraud Organization hacker group in exchange for diverting the course of a criminal probe into the group.

Last month, Moscow officials said that they were working on a bill that would recognize cryptoassets as a form of property “for the purposes of criminal procedures.”

The government is reportedly “considering the bill.” The Civic Chamber has also recently proposed creating a state-run fund for “confiscated cryptoassets.”

The chamber suggested that the “proceeds” from the sale of these “assets” could be used to fund “social projects.”

The post Russian Bailiffs Can Now Turn Criminals’ Bitcoin Into State Revenue appeared first on Cryptonews.