How does local legislation protect cryptocurrency users in cases of fraud or loss of funds?

Although cryptocurrency is not recognized as legal tender in the Russian Federation, users are nevertheless afforded basic legal protection in cases of fraud or participation in financial pyramid schemes. Depending on the specific circumstances, such acts may be classified as follows: • under Article 159 of the Criminal Code — as fraud, i.e., the unlawful appropriation of another’s property through deception or abuse of trust; • under Article 172.2 of the Criminal Code — as the organization, creation, or promotion of a financial pyramid, where funds are solicited with the promise of high returns without actual investment activity. Accordingly, victims have the right to file complaints with law enforcement authorities, and perpetrators may be held criminally liable. However, it should be noted that investigative and evidentiary practices in such cases are still developing — particularly with regard to technical expertise and the handling of digital evidence. At present, comprehensive mechanisms for compensation of damages or regulated dispute resolution for cryptocurrency users in Russia do not exist, which necessitates a high degree of caution from participants in such activities.