Crypto News: Russia Warns Crypto Investors Over Stablecoin Freeze Risk

Russia’s Ministry of Finance has warned domestic crypto investors that the government will not compensate them if foreign stablecoin issuers such as USDT or USDC freeze their assets.

The warning comes as nearly 20 million Russians reportedly hold digital assets worth around 3.7 trillion rubles, or about $44 billion, according to Deputy Finance Minister Ivan Chebeskov.

Russia Puts Stablecoin Freeze Risk on Investors

In an interview, Chebeskov said Russian investors should not expect compensation if foreign crypto issuers freeze their assets.

The warning mainly concerns stablecoins such as USDT and USDC. Their issuers can freeze tokens in response to sanctions, court orders or other legal requirements.

Chebeskov said the government would not cover losses resulting from such freezes, including when investors hold the tokens in private wallets.

This means holding stablecoins in a private wallet does not necessarily prevent the issuer from freezing the tokens.

Russia has already seen this risk. In March 2025, Tether froze more than $28 million in USDT linked to Garantex after sanctions were imposed on the exchange.

Russia’s Crypto Market Reaches $44 Billion

Chebeskov said around 20 million Russians hold cryptocurrencies worth approximately 3.7 trillion rubles, or more than $44 billion.