This article revisits Agamben's concept of 'state of exception'. It argues that the postmodern state of exception is exercised not through the suspension of law, as Agamben suggests and as was the case with modern sovereignty, but through the counterfeiting of legality. The counterfeiting of law, which corrupts its meaning, is part of the broader 'corruption of sign' in the postmodern political-cultural economy. The article first details an extended case of counterfeiting of legality in the practices of business raiding, commonly termed reiderstvo, in Russia. It then describes and analyzes the main features of what I call the 'corrupt state of exception' in Russia. The article concludes with a few remarks on the paradigmatic nature of the state of exception in Russia and its consequences for legal and political anthropology.