Russian Authorities Arrest S-Group Founders Over $100 Million Fraud

Russian police have dismantled the operations of Sincere Systems Group LTD (S-Group), suspected of defrauding clients of over $100 million under the guise of investments. This was reported by the Ministry of Internal Affairs of Russia.

According to case materials, S-Group, established by Ukrainian citizens, has been operating in Russia since 2020, with branches in several regions. Company representatives conducted seminars promoting successful trading activities in the Forex market and other areas, including the use of artificial intelligence. Investors were promised returns of 3–30% per month.

In exchange for cryptocurrency investments, clients received internal tokens called SWCT, which investigators believe held no real value. The scheme’s organizers allegedly prevented fund withdrawals, citing account blocks and audits, law enforcement added. The damage exceeded $100 million.

Two alleged founders of S-Group have been arrested, and 30 individuals have been taken in for questioning. The investigation is ongoing.

Since August 2021, S-Group has been blacklisted by the Central Bank as a company exhibiting characteristics of a financial pyramid.

In late November, media outlets reported on the possible escape of OneCoin founder Ruja Ignatova to Russia.