Ukraine Takes Down Massive $40 Million Crypto Scam – Bitcoin News


Ukrainian law enforcement has uncovered a financial pyramid originating from Russia, which is believed to have generated millions of U.S. dollars. The scam enticed victims to transfer fiat currency and cryptocurrency by touting profitable investments in global companies.

Ukraine Busts Large Crypto Pyramid Scheme With Russian Roots

Officers from the Security Service of Ukraine (SBU) have cracked down on a fake investment platform called ‘Life Is Good,’ the agency reported on Tuesday. The fraudsters behind it had promised potential clients to multiply their money by purchasing shares of major enterprises around the world.

The perpetrators of the massive pyramid scheme allegedly collected nearly $40 million dollars from more than 1,000 people they managed to swindle. The victims were instructed to transfer the funds directly to the crypto wallets and bank accounts of the criminals.

Life Is Good had an online platform maintaining fake investor accounts. Customers were promised lucrative deals that would bring stable profits in the form of dividends as well as “guaranteed” bonuses if they were able to bring in new members to the project.

Ukraine Dismantles $40 Million Russian Crypto Pyramid
Source: SBU

According to the Ukrainian authorities, more than 10 people had been involved in the criminal organization, mostly Russian nationals. The financial pyramid, which had been launched in Russia in 2017, had a local branch in Ukraine.

After Russia’s full-scale invasion that began in late February, 2022, the organizers attempted to conceal their involvement by setting up a mechanism to gather cryptocurrency through a network of exchanges across the country.

Working with their partners from the Ukrainian police and prosecutors, the SBU officers searched Life Is Good’s offices in Kyiv, confiscating computers, mobile phones, accounting documents, and other evidence of criminal activity, as well as promotional materials.

Law enforcement agencies in Ukraine, a regional leader in crypto adoption, have been developing their cryptocurrency expertise. As per a report in March, employees of the nation’s Cyberpolice, the Asset Recovery and Management Agency, and the SBU had taken part in training classes organized by Binance, the world’s leading digital asset exchange.

In November, the Cyberpolice, which is the nation’s cybercrime combating unit, dismantled a crypto scam scheme allegedly making €200 million a year ($207 million at the time) by enticing 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

Do you think the Russian crypto fraudsters continued to operate in Ukraine after the war broke out? Let us know 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.

Image Credits: Shutterstock, Pixabay, Wiki Commons, SBU

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