Russia Seizes $10M Bitcoin in Historic Crypto Bribery Scandal

Highlights:

• Russia has confiscated $10M in Bitcoin from a former official involved in a bribery case.
• Marat Tambiev was sentenced to 16 years for accepting 2,718 BTC in bribes to shield hackers from prosecution.
• Authorities are liquidating seized Bitcoin and other assets to recover millions for the Russian state revenue.

The Russian government has seized $10 million worth of Bitcoin belonging to a former law enforcement official. According to local reports, court enforcement officers reported confiscating 1 billion Russian rubles from Marat Tambiev. Authorities convicted Tambiev, a former employee of the Investigative Committee of Russia, for taking cryptocurrency bribes. As legal proceedings continue, the authorities will add the confiscated Bitcoin to state revenue.

🚨BREAKING: Russia 🇷🇺 to sell 1,000+ $BTC from the Infraud case, per TASS. This move could impact crypto markets as authorities liquidate seized digital assets. #Bitcoin #CryptoNews 🔒💰 pic.twitter.com/cl7ttMb2a6

— CryptoMarketControl (@CryptoMarketCon) January 10, 2025

Authorities accessed his Ledger Nano X hardware wallet in order to retrieve the Bitcoin. The amount confiscated amounts to less than 4% of the total bribe amount. Tambiev accepted a 2,718 BTC bribe which was worth $258 million at the time. Investigators described the bribe as the largest ever in Russian history. Officers arrested Tambiev in March 2022 and found his private key in a folder on his laptop named ‘Retirement.’

Court Orders Liquidation of Seized Bitcoin for State Revenue

The Nikulinsky District Court of Moscow ordered authorities to seize 1,032 BTC worth $98 million in 2023. The court ruled that authorities should consider the acquisition of the cryptocurrency as unconfirmed income. Russian authorities are now liquidating the Bitcoin into rubles. The process, however, has been hampered by the fragmented nature of the assets.

A Russian court sentenced Tambiev to 16 years in a maximum security penal colony in October 2024. Authorities censured Tambiev, stripped him of his rank, and fined him 500 million rubles ($5.2 million). Authorities banned Tambiev from holding any government position for 12 years after his release.

Prosecutors Target Additional Assets Linked to Crypto Bribery Case

Prosecutors filed another lawsuit in late 2024 to confiscate other assets from Tambiev. These include real estate properties and additional Bitcoin. Authorities suspect that Tambiev acquired the assets illegally. Tambiev’s uncle, Shagaban Kubanov, is a co-defendant in the case.

The court has already seized property through another enforcement proceeding. The court included a 15,000 ruble enforcement fee in Tambiev’s case. Authorities expect the seized assets to boost state revenue.

The court also sentenced Kristina Lyakhovenko to nine years in prison. The court convicted her of accepting bribes and falsifying evidence. Authorities report that Dmitry Gubin, a third defendant, is still on the run. The move comes after a U.S. federal judge authorized the Department of Justice to sell approximately 69,370 Bitcoin seized in connection with the Silk Road case.

The US Govt has been given the greenlight to liquidate 69,000 BTC ($6.5B) from Silk Road, an official confirmed to DB News today

Interesting situation less than 2 weeks away from the new admin who vowed to not sell https://t.co/HqD1KnhJK3 pic.twitter.com/xn8ATSEL7H

— db (@tier10k) January 9, 2025

Crypto Bribery Cases Reveal Challenges for Law Enforcement in Russia

Members of the group allegedly offered bribes in exchange for pausing criminal prosecution and concealing crypto holdings worth 14 billion rubles ($138 million). The group allegedly offered bribes in exchange for pausing criminal prosecution and covering up crypto holdings worth 14 billion rubles ($138 million). Investigators implicated several former ICRF employees in similar bribery schemes.

Authorities continue to struggle to liquidate decentralized assets associated with criminal cases. In blockchain, controls around ownership and fund recovery are very difficult to trace. Prosecutors believe the family of Tambiev may be holding some of the digital assets belonging to him.