Russian pro-regime movement “All-Russia People’s Front” (ONF) addressed an appeal for elaborating a mechanism that would allow for shutting down fraudulent crypto websites to the Supreme Court of Russia. This move was prompted by Nizhny Tagil District Court’s refusal to block the Tagilcoin cryptocurrency sales website due to its allegedly suspicious nature, as requested earlier by Sverdlovsk Region Prosecutor’s Office.
“This decision is not sufficiently substantiated. In fact, it legalizes fraudulent operations affecting hundreds of thousands Russian residents and results in unrepentant money withdrawal from the country, while causing much confusion in law enforcement practice related to citizens’ financial rights protection,”- Natalia Kostenko, the representative of the movement’s Directorate and the member of the State Duma, stated.
In February 2018, Sverdlovsk Region Prosecutor’s Office submitted a petition to the court to block Tagilcoin website, the latter being subject to users’ complaints. According to the complainant’s observations, the website did not contain any details on the cryptocurrency-selling organization.
As revealed by the Prosecutor’s Office, the domain name belongs to US-based GoDaddy Inc. company. Thus, citizens’’ funds are being transferred to foreign jurisdiction where their rights are unprotected.
Nizhny Tagil District Court rejected the claim for shutting down Tagilcoin website filed by the Prosecutor’s Office stating that such an action would be contradictory to newly emerging cryptocurrency regulation policies.
“This ruling is a precedential one, because the Court denied the Prosecutor’s office shutting down a misleading website and in doing so referred not to the applicable law, but, in fact, to something that does not exist. As for us, we want to ensure that no such activities will be carried out before the State defines its policies in this new field and establishes new legal arrangements for protection of its citizens’ rights,”- Kostenko stated.
As we reported earlier, the Supreme Court will hear the case on Bitcoin-related website shutdown for the first time ever. The appeal was taken to court on February 16 with the hearing scheduled for March 21, as can be seen from the information posted at the Court’s website.