One of the founders of a crypto pyramid scheme responsible for millions in losses has been exposed in Kyiv
Cybercrime officers and investigators from the Dnipro Police Department of the Main Directorate of the National Police in Kyiv, under the procedural supervision of the Dnipro District Prosecutor’s Office in Kyiv, have uncovered the activities of a group of individuals who organised a scheme to embezzle funds under the guise of investing in cryptocurrency.
According to the investigation, since 2022, members of the group have operated a network of pyramid schemes in Ukraine. They offered to invest funds in their own cryptocurrency token, promising a stable return. The project was positioned as a platform in the crypto industry, which allegedly created new products and allowed users to generate income.
In reality, the scheme operated on the principle of network marketing with characteristics of a pyramid scheme. Profits were promised through the recruitment of new participants, and payments were structured according to a pyramid or binary commission system. According to preliminary data, citizens were defrauded of approximately one million dollars.
The project was promoted by its founder and his wife. They advertised the platform on the social network Instagram, and bloggers also joined in the promotion, urging their followers to invest. Communication with potential clients took place via a messaging app, where consultations were conducted on behalf of company representatives.
The investigation established that the participants in the scheme had experience in the field of information technology and ensured the creation and operation of the online platform. Through the website, users registered and topped up their accounts, expecting to make a profit.
Law enforcement officers carried out searches at the suspects’ residences in the Khmelnytskyi, Odesa, Chernihiv and Poltava regions. Computer equipment, notes and a car were seized.
One of the suspects has been notified of suspicion under Part 4 of Article 190 of the Criminal Code of Ukraine. The offence carries a penalty of up to eight years’ imprisonment.
The pre-trial investigation is ongoing.
