A network of fake cryptocurrency exchanges has been uncovered in Ukraine — 20 million hryvnias in cash was seized during searches in seven regions
This was announced by Ukraine’s Prosecutor General, Ruslan Kravchenko.
Under the guise of a currency and crypto-asset exchange service, the scheme’s organisers defrauded members of the public of their funds. They disguised the scheme as a legitimate business — setting up their own website, an application system, verification codes and a network of exchange points, whilst conducting communications via Telegram.
Once an application had been submitted, a manager would contact the customer to provide the application number, a personal confirmation code, the address of the exchange point and other details.
After handing over the cash, clients received neither crypto-assets nor a refund. Instead, they were given vague explanations and the process was dragged out indefinitely.
According to the Prosecutor General, whilst the crime was being documented, members of the network used a similar scheme to misappropriate 50,000 hryvnias as part of a test purchase.
Law enforcement agencies are currently preparing charges against the scheme’s participants for the fraudulent misappropriation of another person’s property, whilst the investigation is identifying all those involved in organising it.
“In today’s financial world, fraudsters also look ‘modern’. But deception remains deception, even if it is disguised as a new crypto exchange. If a person transfers money and receives nothing in return, that is not a business model, but a matter for criminal proceedings,” the Prosecutor General emphasised.
Prior to this, Bihus.Info published an investigation into the Money 24/7 exchange network — it was actively promoted on social media and was a partner of the Dynamo Kyiv football club. As journalists discovered, under this scheme involving fake crypto exchanges, Money 24/7 customers could have lost around $10 million. The network’s owner, Andriy Smirnov, admitted that payments to previous customers were made using funds from new customers, and also confirmed the company’s debts.
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