Moscow arrests founder of fraudulent Bitcoin exchange Intelex

Moscow law enforcement officers have arrested one of the heads of the Well-being investment fund and founder of the cryptocurrency exchange Intelex, Vitaly Sokolovsky, who is accused of fraud amounting to tens of millions of rubles. This is reported by «Коммерсант» citing sources.

According to investigators, during 2021–2022 Sokolovsky, together with accomplice Vitaly Pavlov, attracted funds under the pretext of investing in cryptocurrencies, promising monthly dividends of 12%.

The amount of contributions ranged from 4.5 million to 15 million rubles. The fund operated as a financial pyramid, so some clients initially received the promised returns from the funds of new investors.

In addition, the leaders of the Well-being launched the Intelex exchange purportedly so that investors could trade cryptocurrencies themselves. To open a personal account on the platform, a fee of about $1,000 was required. The exchange’s website is currently unavailable.

According to investigators, all funds received were embezzled by Sokolovsky and his accomplices.

Beyond Moscow, the fund’s branches operated in Saint Petersburg, Krasnodar and Sochi.

Currently, around thirty people have been recognised as victims in the case, but the number is likely to grow substantially. The losses could run into hundreds of millions of rubles.

Currently Sokolovsky is in a pre-trial detention centre. Vitaly Pavlov has been placed on the wanted list, and he has been charged with fraud in absentia.

Earlier, ForkLog reported that for the first half of 2023 the total losses from the activities of Russia’s largest cryptocurrency pyramids amounted to more than $50 million.