Ukraine closes financial pyramid with turnover of nearly $40 million

Officials from the SBU uncovered the Life is good financial pyramid, which attracted funds, including cryptocurrencies, purportedly for investment in major enterprises around the world.

According to investigators, users were promised stable earnings and additional bonuses for recruiting new participants. In reality, all contributions went to the organizers’ personal crypto wallets and bank accounts.

Thus, the perpetrators defrauded more than 1,000 people, totaling around $40 million.

The Security Service of Ukraine said that the Life is good fraud scheme originated in Russia and opened a branch in Ukraine in 2017.

To hide their involvement in the pyramid after the full-scale invasion, the organizers set up a mechanism to attract cryptocurrency through a network of cryptocurrency exchangers across the country.

During searches, law enforcement officers seized computers, mobile phones, accounting records, documentation, and promotional materials.

One of the top managers was placed under suspicion of fraud. In total, more than 10 people were among the pyramid’s organizers. The investigation continues.

At the end of March, Ukrainian authorities detained a gang of phishers, who extorted $4.3 million from EU residents.