Law enforcement officers uncovered a fraudulent cryptocurrency exchange network operating in seven regions of Ukraine, and during searches, they seized cash in various currencies totaling over UAH 20 million, according to Ukraine’s Prosecutor General, Ruslan Kravchenko.
According to him, the scheme’s participants stole citizens’ funds under the guise of a currency and cryptocurrency exchange service. To do so, they used a website, Telegram, a request system, confirmation codes, and a network of exchange offices, creating the impression that they were operating a legitimate financial service.
According to Kravchenko, after submitting an application, a manager contacted the client and provided the application number, individual confirmation code, exchange office address, and other details. After transferring the cash, clients received neither the cryptocurrency nor a refund. Instead, they were given formal explanations and the process was delayed indefinitely.
According to the Prosecutor General, while documenting the crime, network members obtained UAH 50,000 through a similar scheme in an operational procurement, which, in his opinion, indicates the functioning of a proven mechanism.
"If someone hands over money and receives nothing in return, that’s not a business model, but a criminal offense," Kravchenko noted.
He also reported that participants in the scheme are being served with notices of suspicion of appropriating someone else’s property by fraud, committed by prior conspiracy among a group of individuals, and the investigation is ongoing to identify everyone involved in the platform’s operation—from the organizers to those who accepted funds from the victims.
In turn, the National Police of Ukraine reported that investigators and cyber police are conducting more than 40 urgent searches at the residences of the defendants and at currency exchange offices as part of a criminal investigation into the fraud.
"The currency exchange network operated without the appropriate licenses. Furthermore, under the guise of providing currency exchange services and purchasing cryptocurrencies, its participants embezzled funds from citizens. After the money was transferred, the victims did not receive the promised cryptocurrencies, and communication with the suspects was lost," according to a statement distributed on Telegram by the National Police press service.
The police also reported that documents, vehicles, and cash are being seized during the investigation for the purpose of subsequent compensation to the victims. One of the members of the criminal group has been detained under Article 208 of the Criminal Procedure Code of Ukraine. He is expected to be notified of the suspicion and served with a petition for a preventive measure.
