Ukrainian cyber police, in cooperation with international law enforcement agencies, have dismantled a transnational organized crime group responsible for defrauding Latvian citizens of over 6 million UAH (~$144,000) through fake cryptocurrency investment schemes.
Since 2022, the group has been operating fraudulent investment platforms that mimicked legitimate cryptocurrency trading sites. The websites were used to lure unsuspecting investors into believing they were engaging in real crypto trading.
The criminal group set up an extensive network of call centers throughout Ukraine, where operators used aggressive marketing tactics and social engineering techniques to attract victims. The fake platforms were widely promoted via social media, promising extraordinary returns on investments.
In many cases, the victims were convinced to install remote access software, giving the scammers full control over their devices and financial information. This allowed the perpetrators to manipulate transactions and siphon funds directly from victims’ accounts.
To launder the illicitly obtained funds, the group registered as individual entrepreneurs (called FOPs in Ukraine), falsely claiming to provide IT and computer programming services. This allowed them to receive and disguise payments through seemingly legal financial channels. Ukrainian police, with the support of TacTeam special units from the Patrol Police Department, carried out over 30 raids across several Ukrainian regions. Searches were conducted at residential properties, workplaces, and in vehicles linked to the suspects.
As part of the operation, authorities seized computers and server equipment, cryptocurrency wallets and mobile phones, financial documents and handwritten records, bank cards and flash drives, luxury vehicles bought with stolen funds. All confiscated assets have been frozen by court order.
Four individuals, including the suspected ringleader, have been formally charged under Part 4 of Article 190 of the Criminal Code of Ukraine (Fraud), as per the version in effect until August 11, 2023. The offense carries a maximum penalty of up to 12 years in prison.
