Russia is considering utilizing confiscated cryptocurrencies in criminal proceedings “for the benefit of the state.” The nation may proceed with a proposal to establish a government cryptocurrency fund to manage assets seized from criminal activities.

On March 20, 2025, Evgeny Masharov, a member of the Russian Federation’s Public Chamber Commission, stated that such a fund would allow these confiscated cryptocurrencies to be securely retained.

Masharov emphasized that this fund’s value could appreciate significantly over time, asserting that it would eliminate criminally sourced assets from circulation while serving a constructive purpose.

“Subsequently, the profits generated from these cryptocurrencies could be allocated to social, environmental, and educational initiatives,” Masharov added.

Recently, the Russian Finance Ministry disclosed that it currently does not intend to add cryptocurrencies to its strategic reserves due to concerns about market volatility.

Nevertheless, Deputy Finance Minister Vladimir Kolychev indicated that this policy might change when the fund’s liquid assets reach between 7-10% of Russia’s GDP. “At present, the signs of volatility do not favor this decision,” Kolychev noted.

Key Points

• Russia is contemplating using confiscated cryptocurrencies derived from criminal cases for national benefit.
• Confiscated digital currencies may be transferred to a designated fund.
• This initiative aligns with Russian officials’ advancements in proposed legislation that would classify cryptocurrencies as property for legal proceedings.