A 32-year-old man in Odesa is accused of large-scale fraud in the cryptocurrency market. According to the investigation, he posed as an experienced trader and founder of an investment fund, offering acquaintances lucrative opportunities to invest in cryptocurrency. The total loss from his actions amounted to over 42 million UAH — more than 1 million USD at the current exchange rate.
This is reported by Finway
Fraud Scheme and Actions of the Perpetrators
Law enforcement officials discovered that the fraudster, along with an accomplice, meticulously developed a fraudulent scheme. To legitimize his activities, he rented an office in Odesa and organized meetings with potential investors. The fraudster convinced investors of the high profitability of “crypto investments” and created the appearance of profits by periodically returning small amounts as “interest.” This increased the victims’ trust and encouraged them to invest more money.
In reality, the funds were not invested in any cryptocurrency assets. All the collected money was transferred by the perpetrator to personal bank accounts and cryptocurrency wallets, which he then spent on his own needs.
“The perpetrator created the illusion of a successful business in cryptocurrency trading and convinced acquaintances to invest money in his nonexistent fund. The carefully planned scheme left people without savings,” the police stated.
Legal Qualification and Consequences
During the investigation, law enforcement documented evidence of illegal activities. The man has been charged under Part 5 of Article 190 of the Criminal Code of Ukraine — fraud committed by a group of individuals by prior conspiracy, in especially large amounts, repeatedly and under martial law. He faces up to 12 years in prison with confiscation of property.
The pre-trial investigation has been completed, and the indictment along with the case materials has already been submitted to the court.
Recently, cases of fraud disguised as cryptocurrency investments have become more frequent in Ukraine. Just a month ago, a call center was uncovered in Kyiv, whose employees were deceiving foreigners, and in July, law enforcement revealed an international scheme involving crypto crimes, with victims being citizens of EU countries.