Ukraine uncovers scheme to siphon funds disguised as cryptocurrency investments

Ukrainian law-enforcement authorities have detained suspects in an international fraud ring involved in money laundering. The perpetrators lured victims with the pretext of investments in cryptocurrencies, securities and other assets, according to the Office of the Prosecutor General’s website.

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According to investigators, the group members since 2017 misappropriated funds through specially created websites that allegedly allowed profits from trading various assets.

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“Investors were misled, imitating through a software interface a sales contract and a fictitious growth of profits from stolen funds by more than 100 times,” according to the statement.

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When victims sought to withdraw profits, criminals called them posing as employees of trading platforms and demanded payment of a service fee and a 15% commission on the amount.

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After payment, investors’ accounts were blocked.

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Preliminary losses amounted to €9 million. The majority of victims were citizens of Germany, Austria and other EU countries.

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Law enforcement officers detained two suspects linked to the group. During searches they seized documents and cars. 

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In December 2020, a seizure was placed on the suspects’ assets. The total value of the property amounted to about €50 million. 

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The suspects are in custody; the investigation continues.

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Earlier, the Security Service of Ukraine disrupted the activities of individuals who swindled funds from EU and CIS citizens under the guise of investments in cryptocurrency, securities, gold and other assets.

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