More than 50 customers of Russian cryptocurrency exchange Veribit attempted to stage a protest at the company's offices in Moscow.
According to reports, the riots began on April 26 at the Federation Tower, where Belibit's office was located, with customers demanding the return of some 400 million rubles that they were unable to withdraw for several days.
Investors have complained that their funds get “stuck” during the withdrawal process, as opposed to smooth deposit transactions.
Veribit staff tried to leave through another exit, but were blocked by irate investors, prompting police intervention.
A video circulating on Telegram claims that disgruntled customers were given chocolates instead of cash as a means of redress.
Russian online newspaper Mash first reported the situation on Telegram.
Gazeta.Ru picked up the story and reported that an employee of the exchange promised to refund 50% of the investment amount immediately and the remaining balance within 1 to 15 days.
On April 26, Veribit's official Telegram channel announced that following the exchange's recent management change, a series of balance sheet discrepancies were discovered, forcing the company to implement a thorough audit process. .
The exchange said customers were also required to undergo a KYC/AML verification process, which it claimed caused a temporary hold-up in deposit and withdrawal requests.
Beribit also revealed that customers who pass KYC/AML audits and verifications will regain unrestricted access to use their accounts.
Amid this uproar, a bill proposing a ban on virtual currency exchange operations has reportedly been submitted to the National Duma. If passed, the bill would not affect crypto trading or registered mining entities. It also includes a ban on virtual currency advertising.
Conversely, another lawmaker emphasized the role of cryptocurrencies in procuring weapons and defense assets from non-Western sources and evading sanctions, and said a ban on exchanges could endanger Russia's national security. insisted.
Beribit, a registered cryptocurrency exchange that facilitates ruble and cryptocurrencies, P2P, USDT, and asset trading, recently came under law enforcement surveillance after its offices were raided in March.
The scrutiny coincides with a temporary suspension of the website and is reportedly related to the investigation into the attack at Crocus City Hall.
