Ukrainian authorities uncover $40 million crypto Ponzi scheme

Ukrainian police have uncovered a cryptocurrency pyramid scheme in Russia suspected of making millions of US dollars.

The Ukrainian Security Service uncovered a scheme A huge pyramid disguised as an investment project called “Life is Good”. The perpetrators reportedly offered the victims the opportunity to become investors, rapidly increasing their capital investment.

The pyramid scheme is based on attracting new investors To pay previous investors. Scammers often promise big wins with very little risk. They are fundamentally unsustainable and often cause huge losses to the victims.

according to the authorities, The perpetrators defrauded more than a thousand victims out of nearly $40 million. The money was then transferred to the organizer’s cryptocurrency wallets and bank accounts. In order to use the service, scammers have developed their own web resources with the accounts of potential “investors”.

Fraudulent deals promised investors profits in the form of dividends for investing in stocks of promising world-class companies. next to, Scammers “guarantee” their clients “bonuses” To attract new clients.

Russia based planner

Prior to 2017, the scheme was operating from the Russian Federation. But in the end They opened an office in the Ukrainian capital, Kyiv, and paid Great ad campaign. Kyiv police have reportedly arrested ten people in connection with the fraud. Most of the defendants are citizens of the Russian Federation.

The pyramid scheme tried to hide its involvement After Russian forces invaded Ukraine in February 2022. This is probably due to increased scrutiny of Russian companies in the country.

Reports have emerged that authorities have found computersCell phones, financial documents and draft records In kyiv office and at different residential addresses.

All of them have evidence of illegal activity. I found the security service too Souvenirs and advertising products that served to attract “investors”. according to Ukrainian mediathe investigation is continuing.