Russia Wants To Create A Crypto Fund With Seized Assets: A Shocking Project!

As the world questions the integration of digital assets into state strategies, Russia takes a new step. It is considering transforming its seized crypto into an economic and social lever. A decision that raises eyebrows at the Bank of Russia!

A public crypto fund to monetize seized assets

The proposal comes from Evgeny Masharov, an influential member of the Civic Chamber of Russia. Specifically, it aims to create a governmental fund intended to manage seized crypto assets within the framework of criminal proceedings. More precisely, they will be invested in social, educational, and environmental projects.

According to local sources, several million dollars in crypto have already been confiscated in recent years without any clear rules dictating their allocation. Masharov’s idea thus aims to:

• structure this practice;
• offer new transparency in the management of digital resources from the judicial system.

Masharov’s enthusiasm is not unanimous

The Governor of the Bank of Russia, Elvira Nabiullina, has just reafirmed her rejection of any public investment in crypto-assets. According to her:

“Investing in cryptocurrency makes no sense for the central bank in terms of value preservation, as it is a very volatile asset.”

This reluctance can be explained by:

• the lack of market stability in crypto;
• the risks associated with institutional adoption.

Yet, other signs show a gradual shift. One particularly refers to a pilot project. It already allows some wealthy investors to legally trade digital assets under regulatory supervision.

The standoff between the Russian government (favoring a strategy for valorizing seized crypto) and the Bank of Russia illustrates the tensions surrounding crypto regulation in the country.

Although controversial, the Russian initiative opens a new avenue for states seeking to frame and exploit crypto-assets derived from judicial confiscation. If the bill is passed, Russia could become the first country to officially integrate crypto as a strategic asset for the common good.