Two Russian teenagers have been apprehended in a crackdown on a suspected crypto-powered “money laundering” ring, as per reports from a law enforcement source on May 14.

According to the unnamed source in the Khanty-Mansi Autonomous Okrug, the teenage brothers allegedly enticed other teens in the region to participate in their scheme, which involved an illegal crypto exchange operation.

The scheme reportedly came to light when parents of some of the involved teens sent a statement to law enforcement agencies in April, alerting them to the organized crime group's activities.

The brothers allegedly offered fellow teens small financial incentives to process crypto-related transactions through their bank accounts. One of the teens was reported to have transacted almost $22,000 worth of crypto exchange-related funds, earning around $4,400 in cash.

The case has garnered the attention of the federal investigative agency, the Investigative Committee of the Russian Federation, with committee chief Alexander Bastrykin personally intervening. The regional branch of the committee is monitoring the case.

In Russia, crypto exchanges currently have no legal status, and both law enforcement and anti-money laundering agencies have highlighted crypto's popularity among money launderers and criminals.

The country is set to debate crypto-related legislation proposing a ban on domestic crypto exchanges, except for official sandbox operators, and measures to regulate crypto mining.

The draft bill also aims to enable energy providers to monitor and regulate home-based crypto miners while legalizing the industrial crypto mining sector.

The case underscores the challenges of regulating crypto activities in Russia amidst growing concerns over illicit crypto-related operations.