Ukrainian Police Bust Cryptocurrency Scam, Monthly Theft Reaches $1 Million

Ukrainian police, in collaboration with the Security Service of Ukraine (SBU), have dismantled a scam network that used a fake investment platform to steal cryptocurrency. The network lured users to connect their main crypto wallets and approve small test transactions through websites disguised as investment platforms. Subsequently, a hidden "wallet thief" automatically transferred users' funds to wallets controlled by the operators, while victims were kicked off the platform. Investigations confirmed 62 victims, with over 46 Ukrainian citizens involved, and monthly thefts reaching up to $1 million. Police stated that the false profits displayed on the platform were part of the scam, with operators manually creating transactions and adjusting user account balances to create the illusion of investment growth. The platform also collected victims' passport information, phone numbers, email addresses, login credentials, and photos during the registration and identity verification process. The main organizer of the network is a 25-year-old IT expert who recruited over 46 Ukrainian citizens and operated multiple offices in Kyiv and surrounding areas. Members were responsible for building and maintaining fake websites, contacting potential victims, and providing security. Victims came from various countries including Germany, Poland, Lithuania, Latvia, Spain, France, the UK, Canada, and Israel. Police tracked the gang's server equipment located in the Netherlands and obtained databases stored there, including victim lists, cryptocurrency wallet addresses, amounts suspected to be stolen, internal communications, and platform operation information. Subsequently, Ukrainian police and the SBU executed 34 searches in Kyiv and surrounding areas, seizing over 100 computers, more than 100 mobile phones, 79 SIM cards, documents, cash, and 15 vehicles.

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