Russian authorities confiscate assets in 5-billion-ruble crypto bribery probe

A Russian court has ordered the seizure of the property of a former employee of the interior ministry in Moscow, prosecuted for accepting bribes in cryptocurrency worth billions of rubles.

The development in the high-profile case comes as Russian lawmakers prepare to legalize the state confiscation of digital assets as part of criminal proceedings this year.

Former police official loses his property over crypto-funded corruption

The Zyuzinsky District Court in the Russian capital has approved the prosecutors’ claim over the property of a corrupt official from the Ministry of Internal Affairs (MVD).

Identified as Georgy Satyukov, the department’s former employee has been convicted for accepting crypto bribes for a record 5 billion rubles (over $66 million at current exchange rates).

The man’s assets will be seized “for the benefit of the state,” a participant in the proceedings told RIA Novosti, which quoted the source as stating:

“The court fully upheld the request of the Prosecutor General’s Office to seize Satyukov’s property.”

The trial was held behind closed doors, the news agency noted in a report on Thursday. In April 2024, the Basmanny District Court of Moscow sentenced Satyukov in absentia.

The ex-specialist in combating financial fraud had fled abroad after the launch of the investigation against him over the massive bribe, the largest in the MVD’s recent history.

He is believed to have been receiving the cryptocurrency in exchange for providing protection to people involved in various financial schemes.

In December of that year, the head of Russia’s Investigative Committee, Alexander Bastrykin, revealed his colleagues had seized over 2 billion rubles as part of the same probe.

The whereabouts of one of Satyukov’s subordinates who is also implicated, Dmitry Sokolov, are unknown, too. Both have been placed on an international wanted listed.

Russia to regulate all crypto transactions including state seizure of digital assets

Russian authorities are gearing up to comprehensively regulate all transactions with cryptocurrencies, including investment and trading, by the summer of 2026.

According to the latest regulatory concept proposed by the Bank of Russia in late December, Bitcoin and the like will be treated as “monetary assets.”

Under current Russian legislation, digital currency has been partially recognized as property, at least in some legal acts.

A bill granting it the same status under the country’s Criminal Law and Criminal Procedure Law was recently approved for final adoption by the legislative committee of the State Duma, the lower house of Russian parliament.

The draft law introduces effective mechanisms for the seizure of coins by law enforcement agencies and their subsequent confiscation for the state or to secure civil claims.

Earlier in January, Russia’s Constitutional Court upheld the property rights of cryptocurrency owners, including the right to judicial protection.

There have been a number of precedents already in the Russian judicial practice, when crypto holdings have been treated like property.

Last week, media reports revealed that the office of Russia’s Federal Bailiff Service in the Krasnodar Krai region has seized the digital assets of a local resident to settle his child support debt.

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