I always thought they are in both. Most of Russia is in Asia but their Capital is in Europe so there's no straight answer to that. The best one would be they are located on the Eurasian continent and and lie partially in Asia and Europe. It's officially called a transcontinental country.

I see nothing bad for Bitcoin in this news. They were using a number of things to launder money like credit cards, fake IDs and sim cards. They also had bank accounts. Let's not blame Bitcoin for what people are doing with it.