Russian Civic Chamber proposes creation of fund for confiscated crypto

Russia is considering a plan to direct confiscated cryptocurrency into a special fund, with proceeds from its use allocated to social initiatives. 

Yevgeny Masharov, a member of the Public Chamber of the Russian Federation, expressed support for the proposal, which is part of a broader effort to define crypto as property under criminal law.

Masharov told TASS that seized digital assets should “work for the benefit of the state” rather than remain dormant. 

The proposed fund would hold confiscated cryptocurrency, allowing it to grow in value over time. Revenue generated from these assets could be directed toward social, environmental, and educational projects.

The initiative aligns with a bill submitted by Russia’s Ministry of Justice and the Investigative Committee that seeks to classify cryptocurrency as property and material evidence.

Masharov emphasized the importance of removing illicit crypto holdings from circulation while ensuring they serve a constructive purpose. He also expressed willingness to facilitate discussions between law enforcement, tax authorities, and the crypto industry to develop a unified stance on the matter.

If enacted, the proposal could create a structured approach for handling digital assets linked to criminal activity while integrating them into Russia’s broader financial system.