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Ukrainian authorities have dismantled a network of fake crypto investment platforms that allegedly targeted victims across more than 20 countries. Investigators have identified 62 victims, while the Security Service of Ukraine said the operation handled up to $1 million per month during its busiest periods.
Fake Platforms Promised Crypto Investment Returns
Ukraine’s National Police and Security Service said the group operated several offices in Kyiv and the surrounding region. Investigators allege that a 25-year-old IT specialist from Kyiv organized the operation and recruited more than 46 Ukrainians.
Members promoted crypto investments through Telegram channels and directed users to fake trading websites. The platforms allegedly displayed fabricated investment activity and profits to make deposited funds appear to be growing.
Wallet Drainer Targeted Victims During Withdrawals
Police said victims faced problems when they tried to withdraw their funds. Operators then asked them to connect their main crypto wallet and approve what was presented as a small test transaction.
The websites allegedly contained hidden malicious code known as a crypto drainer. Investigators said approving the transaction could authorize transfers of digital assets to wallets controlled by the group.
Authorities have identified victims in Germany, Poland, Lithuania, Latvia, Spain, France, the U.K., Canada and Israel. Police are still calculating total losses and identifying additional victims. The $1 million figure does not represent a confirmed monthly loss total. The Security Service described it as the operation’s monthly turnover during peak periods.
Dutch Server Stored Scheme Data
Investigators located server infrastructure in the Netherlands that allegedly contained the group’s database. Police said the records included victim information, crypto wallet addresses, amounts taken, internal communications and details about the fake platforms.
Authorities also seized computers, mobile phones, SIM cards, documents, cash, and vehicles during searches in Kyiv and the surrounding region. Police said some property linked to people involved had been registered in relatives’ names.
Fraud Investigation Remains Ongoing
The National Police said the pretrial investigation is continuing under Part 5 of Article 190 of Ukraine’s Criminal Code. Authorities are still determining the full number of people involved and the total amount lost.
People convicted under the cited fraud provision could face up to 12 years in prison and confiscation of property, according to the Security Service. The Office of the Prosecutor General is overseeing the case.
