Kyiv Cyberpolice Dismantle Cryptocurrency Arbitrage Scheme

Kyiv’s Cyberpolice have dismantled a criminal organization whose members were seizing citizens’ cryptocurrencies.

The scheme was orchestrated by two residents of the Kyiv region, who enlisted seven individuals from Kyiv, Zhytomyr, Vinnytsia, and Rivne regions. Most of the participants had known each other since childhood.

They promoted cryptocurrency earnings through Telegram channels and set up two call centers near Kyiv.

Victims were persuaded to deposit digital assets into wallets specified by the perpetrators under the guise of conducting arbitrage operations.

To establish trust, initial investments were returned with purported earnings, but eventually, the scheme’s organizers appropriated the entire sum and ceased communication.

During 28 searches, law enforcement seized dozens of mobile phones, computer equipment, 36 bank cards, nearly two hundred SIM cards, over $54,000 in cash, and two cars valued at more than $20,000 each.

Nine individuals have been charged with forming a criminal organization and fraud. Four have been arrested, while five are under house arrest. The perpetrators face up to 12 years in prison with confiscation of property.

The number of victims and the total damages are being determined.

Earlier, Ukraine tallied the number of cryptocurrency-related criminal cases brought to court. Most were linked to fraud and various financial pyramid schemes.