Ukraine dismantles crypto scam network that stole €4.3 million - BleepingComputer
Ukrainian law enforcement arrested four suspects in a case involving the theft of more than €4.3 million using a network of cryptocurrency investment scam call centers.
The investigation involved Ukraine's Cyber Police Department, the Main Investigation Department of the National Police of Ukraine, and German law enforcement authorities. According to Ukraine's Cyber Police, the suspects used phone calls and messaging apps to build victims' trust through social engineering and trick them into investing in cryptocurrency, shares, and other financial instruments through fraudulent online trading platforms.
Fraudulent Operations
The crime ring targeted potential victims across the European Union, stealing more than €4.3 million from 135 German victims. "They assisted victims in opening accounts on cryptocurrency exchanges, purchasing digital assets and transferring them to accounts controlled by the criminal organisation. In some cases, the suspects also gained access to victims' online banking accounts," the Ukrainian Cyber Police said.
The proceeds of crime were subsequently moved through bank accounts, cryptocurrency exchanges and transit wallets, converted and distributed among members of the criminal organisation.
Investigation Results
After two rounds of searches in August and September in the Kyiv, Vinnytsia, Zaporizhzhia, and Ivano-Frankivsk regions, Ukrainian police detained four members of the investment scam ring, including the leader and three accomplices. During the searches, law enforcement officers also seized over $90,000, nearly 600,000 Ukrainian Hryvnia (roughly $13,000), hardware cryptocurrency wallets, mobile phones, SIM cards, computer equipment, and other evidence.
The four suspects are now held in pre-trial detention and face up to 12 years in prison if found guilty of charges related to fraud and the creation, leadership of, and participation in a criminal organization.
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