A network of fictitious crypto exchanges was exposed in Ukraine: law enforcement officers seized over 20 million hryvnias

Ukrainian law enforcement officers have uncovered a large-scale network of crypto exchangers that, under the guise of a legal currency and cryptoasset exchange service, was seizing citizens’ funds.

This was reported by Ruslan Kravchenko.

According to him, as part of the pre-trial investigation, law enforcement officers conducted more than 20 searches in seven regions of Ukraine.

The investigation established that the defendants organized a scheme that outwardly completely imitated the legal activities of a financial service. For this purpose, a special website, an electronic application system, communication via Telegram, individual confirmation codes, as well as physical exchange points in different regions were used.

All this created the impression of an official and reliable service for cryptocurrency transactions.

However, after transferring cash, clients did not receive either cryptoassets or a refund of their money.

According to the investigation, the scheme worked according to a clear algorithm: after completing the application on the website, the client was contacted by a so-called manager who provided the application number, confirmation code, exchange point address, and other transaction details.

After transferring the funds, the defendants misappropriated the money, and the victims were given formal explanations or delayed the fulfillment of obligations for an indefinite period.

While documenting the criminal activity, the participants in the scheme took possession of 50 thousand hryvnias in a similar way as part of an operational purchase.

During the searches, law enforcement officers seized cash in various currencies for a total amount of over 20 million hryvnias.

Currently, reports of suspicion are being prepared against the participants in the scheme for the facts of taking someone else’s property by fraud committed in prior conspiracy by a group of persons.

The Prosecutor General’s Office emphasizes that the investigation is ongoing, and law enforcement officers are identifying everyone involved in the operation of this network — from the organizers to the individuals who directly accepted money from the victims.