Ukrainian police have exposed a financial pyramid originating in Russia suspected of generating millions of US dollars. The scam convinced victims to send fiat money and cryptocurrencies by promising them profitable investments in large companies around the world.
Large Crypto Pyramid Scheme With Russian Roots Arrested In Ukraine
Officials of the Security Service of Ukraine (SBU) have unraveled a fake investment scheme called ‘Life Is Good’, the agency Announced on Tuesday. The scammers behind it offered potential clients to multiply their money by acquiring shares of global companies.
The organizers of the large-scale pyramid scheme allegedly received nearly $40 million from more than 1,000 people they managed to defraud. Victims were instructed to transfer the money directly to the scammers’ crypto wallets and bank accounts.
Life Is Good had an online platform that maintained fake investor accounts. Clients were promised deals that would bring stable profits in the form of “guaranteed” dividends and bonuses if they could attract new entrants to the project.
According to Ukrainian investigators, more than 10 people have been involved in the criminal organization, mostly Russian citizens. The financial pyramid, which was launched in the Russian Federation in 2017, had a local branch in Ukraine.
Following the full-scale invasion of Russia that began in late February 2022, organizers attempted to hide their involvement in the scheme by devising a mechanism to collect cryptocurrency through a network of exchanges operating throughout Ukraine.
Working with their Ukrainian police colleagues and prosecutors, SBU agents searched Life Is Good’s Kiev offices and seized computers, mobile phones, accounting documents and other records suggesting criminal activity, as well as advertising materials.
Law enforcement agencies in Ukraine, a regional leader in cryptocurrency adoption, have been upping their crypto expertise. According to a March report, employees of the country’s Cyber Police, Asset Recovery and Management Agency, and the SBU attended training classes hosted by Binance, the world’s leading digital asset exchange.
In November, Cyberpolice, which is the nation’s cybercrime fighting unit, dismantled a crypto fraud scheme that was allegedly generating €200 million a year ($207 million at the time) by attracting investors through a chain representative offices and call centers throughout Europe.
Why do you think suspected Russian cryptocurrency scammers continued to operate in Ukraine after the war broke out? Share your thoughts on the case in the comments section below.
image credits: Shutterstock, Pixabay, WikiCommons, SBU
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
