Ukrainian Blogger Suspected of Tax Evasion via Cryptocurrency

Officials from Ukraine’s BEB have reported suspicions against a well-known blogger-arbitrator for evading over 213 million hryvnias ($5.1 million) in taxes. His assets have been frozen.

According to the case materials, the suspect, along with acquaintances, established a commercial company to conduct internet traffic arbitrage, promoting various goods and services. Their clients included online casinos, bookmakers, virtual dating services, as well as sellers of dietary supplements and food additives.

The structure was not registered as a legal entity and was not listed with the tax authorities. Employment contracts were not signed with workers.

The funds received were laundered through cryptocurrencies.

“The suspect’s trusted individuals registered wallets using their personal data and documents. Virtual assets were transferred to the company’s director’s electronic wallets and exchanged for US dollars,” BEB reported.

By their calculations, the company director received over 1 billion hryvnias ($24.2 million) in total income. He did not pay taxes and laundered the funds through the purchase of real estate and luxury cars.

Investigators have seized eight vehicles, apartments, and other premises in Kyiv.

According to the Telegram channel “Novinach”, the detained individual is blogger Oleksandr Slobozhenko.

The investigation is ongoing.

In September 2023, BEB began inspecting bitcoin exchanges owned and founded by Ukrainian residents.

The Bureau also estimated that due to the lack of taxation in the industry, the country’s budget lost at least 3 billion hryvnias (about $81 million) in contributions over ten years.