Ukraine, Baltic authorities dismantle €1.2 million crypto investment fraud targeting EU citizens Photo

Ukrainian and Baltic law enforcement agencies have dismantled a large-scale cryptocurrency investment fraud that allegedly defrauded European Union citizens of at least $1.2 million over the past year.

The Security Service of Ukraine (SBU), working alongside the National Police of Ukraine and law enforcement bodies in Latvia and Lithuania, uncovered the scheme and detained its suspected organiser along with 10 accomplices in the city of Dnipro, Caliber.Az reports per SBU.

According to investigators, the group operated four call centres that targeted EU citizens with offers to invest in what were presented as promising cryptocurrency projects. Victims were directed to an online platform designed to imitate the functioning of a legitimate crypto exchange, where they were shown fabricated profit growth charts.

At the initial stage, potential investors were encouraged to make a small, symbolic deposit. They were then shown what appeared to be instant dividends, a tactic authorities say was intended to build trust and encourage larger transfers. Once victims committed increasingly significant sums to crypto wallets controlled by the suspects, communication was abruptly cut off and the clients’ contacts were blocked.

During 40 searches conducted as part of the investigation, officers seized mobile phones, computer equipment allegedly containing evidence of the operation, and 21 million Ukrainian hryvnias believed to have been obtained through criminal activity.

The suspects have been charged under three articles of Ukraine’s Criminal Code: creating and leading a criminal organisation, large-scale fraud involving electronic computing equipment, and the legalisation of property obtained by criminal means. If convicted, they face up to 12 years in prison with confiscation of property.

The investigation is ongoing.

By Sabina Mammadli