Fake Trader from Odessa Swindles Acquaintances Out of $1 Million

Odessa police concluded an investigation of a local resident's $1 million crypto fraud.

The Odessa police have concluded an investigation involving a local resident who, under the guise of cryptocurrency investments, took over 42 million hryvnias (more than $1 million) from acquaintances.

According to the case materials, a 32-year-old man from Odessa, in collusion with an accomplice, posed as a successful trader and encouraged investments in his “cryptocurrency fund.” To lend credibility, he rented office space where he held meetings with potential investors.

To persuade acquaintances to contribute more funds, the fraudster initially returned small amounts, purportedly as earned interest. In reality, all received funds were transferred to wallets he controlled and spent on personal needs.

The individual faces charges of misappropriating others’ property through abuse of trust. He could face up to 12 years in prison with confiscation of property.

The indictment has been sent to court.

In June, in Sumy, authorities arrested the creator of a fake Bitcoin exchange with damages exceeding 7.6 million hryvnias (~$184,000).