Ukraine Dismantles $40 Million Russian Crypto Pyramid
Ukrainian law enforcement has exposed a financial pyramid originating from Russia suspected of making millions of U.S. dollars. The scam convinced victims to send fiat money and cryptocurrency by promising profitable investments in big companies around the world. Large Crypto Pyramid Scheme With Russian Roots Busted in Ukraine
Officers from the Security Service of Ukraine (SBU) have unraveled a fake investment scheme called ‘Life Is Good,’ the agency announced on Tuesday. The fraudsters behind it offered potential clients to multiply their money by acquiring shares of global enterprises.
The organizers of the large-scale pyramid scheme allegedly received almost $40 million dollars from more than 1,000 people they managed to defraud. The victims were instructed to transfer the money directly to the crypto wallets and bank accounts of the scammers.
Life Is Good had an online platform maintaining fake investor accounts. Customers were promised deals bringing stable profits in the form of dividends and “guaranteed” bonuses if they were able to attract new participants to the project. Source: SBU
According to the Ukrainian investigators, more than 10 people have been involved in the criminal organization, mostly Russian nationals. The financial pyramid, which was launched in the Russian Federation in 2017, had a local branch in Ukraine.
Following Russia’s full-scale invasion that started in late February, 2022, the organizers tried to conceal their involvement in the scheme by elaborating a mechanism to collect cryptocurrencies through a network of exchanges operating throughout Ukraine.
Working with their colleagues from the Ukrainian police and prosecutors, the SBU officers searched Life Is Good’s offices in Kyiv, seizing computers, mobile phones, accounting documents, and other records suggesting criminal activity as well as advertising materials.
Law enforcement agencies in Ukraine, a regional leader in cryptocurrency adoption, have been improving their crypto expertise. According to a report in March, employees of the country’s Cyberpolice, the Asset Recovery and Management Agency, and the SBU attended training classes organized by Binance, the world’s leading digital asset exchange.
In November, the Cyberpolice, which is the nation’s cybercrime combatting unit, dismantled a crypto fraud scheme allegedly making €200 million a year ($207 million at the time) by luring investors through a chain of representative offices and call centers across Europe. Tags in this story conflict, Crypto, crypto investments, crypto pyramid, Cryptocurrencies, Cryptocurrency, financial pyramid, Fraud, fraudsters, invasion, Investors, Pyramid Scheme, Russia, russian, SBU, Scam, scammers, security service, Ukraine, ukrainian, Victims, War
Why do you think the alleged Russian crypto fraudsters continued to operate in Ukraine after the war broke out? Share your thoughts on the case in the comments section below. Lubomir Tassev
Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Georgia Rep. Marjorie Taylor Greene Criticizes Fednow Project, Pushes for Return to Gold Standard NEWS | 6 hours ago Arbitrum Registers Record Activity Over the Last 2 Weeks as Transactions per Day Count Surges NEWS | 9 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons, SBU Previous articleUS Treasury Report Warns of Defi’s Threat to National Security, Authors Conclude Fiat Is Used in Illicit Finance More Than Crypto Next articleNew York Regulator Calls Crypto Theories Associated With Signature Bank Closure ‘Ludicrous’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework
Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.Tony Hawk"s Latest NFTs to Come With Signed Physical Skateboards Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design