Tension mounted at the Moscow office of Beribit, a Russian cryptocurrency exchange, as more than 50 disgruntled clients attempted to stage a protest demanding the return of their funds. The unrest unfolded on April 26 at the Federation Tower, where Beribit’s office is located, with clients clamoring for the withdrawal of approximately 400 million rubles (around $5 million) that had been stuck in the exchange for several days.
According to reports, the investors expressed frustration over the ease of depositing funds into the exchange but encountered difficulties when attempting to withdraw their investments. In a circulating video on Telegram, it was alleged that instead of receiving their funds, disgruntled clients were handed chocolates as a form of redress by Beribit staff.
The situation escalated as Beribit employees allegedly attempted to leave the premises through alternative exits, prompting the irate investors to block their path. The police were subsequently called in to intervene and de-escalate the tense situation.
Amidst the turmoil, rumors of a potential ban on crypto exchange operations in Russia have added to the uncertainty surrounding the incident. A bill proposing such a ban has reportedly been tabled in the State Duma, although it would not affect crypto transactions or registered mining entities. The proposed legislation also includes a prohibition on cryptocurrency advertising.
However, some legislators have voiced concerns over the potential implications of banning crypto exchanges, arguing that it could jeopardize Russia’s national security by hindering the country’s ability to procure weapons and defense assets from non-Western sources and circumvent sanctions through the use of cryptocurrencies.
In response to the unrest, Beribit’s official Telegram channel announced that following recent management changes at the exchange, a series of balance sheet discrepancies were discovered, forcing the company to institute a thorough audit process. The exchange also stated that clients were required to undergo KYC/AML verification processes, which it claims has caused a temporary backlog of requests for deposits and withdrawals.
Beribit, a registered crypto exchange facilitating ruble-crypto, P2P, USDT, and asset trading, has faced scrutiny from law enforcement in recent months. In March, searches were conducted at their offices, coinciding with a temporary website outage reportedly linked to investigations surrounding a terrorist incident at Crocus City Hall.
As the situation unfolds, the crypto community in Russia is closely monitoring developments, with concerns mounting over the potential impact of a crypto exchange ban on the country’s digital asset landscape.
