Large Fraudulent Crypto Network Taken Down by Ukrainian Officials


Dec 11, 2020
An announcement by the Security Service of Ukraine (SBU) revealed that the organization just cracked a case of illegal cryptocurrency exchanges that worked under the same network. This network was located in Kiev.

The official press release stated that the turnover was calculated at $1.1 million per month. This is a rough estimation of what the scammers brought as profit. Moreover, the report told us that such an amount is derived from a 5% to 10% interest on each transaction.

Authorities behind the crackdown of the case revealed that these types of crypto exchanges were very popular amongst a big number of investors due to the anonymity of the transactions. Moreover, individual investors could easily launder money through these operations.

The local Security Services found computers, mobile devices, money laundering documents, server machines, and thousands in cash in 5 districts of Kiev.

Authorities revealed that this network was operational since the beginning of 2021, and that’s more than 1000 investors have already used their services.

Chainalysis, as reported by FinaceMagnates recently disclosed the results of a survey in Ukraine that analyzed the adoption of Bitcoin and other cryptocurrencies. The end result was that investors bought $400 million in digital coins in Ukraine in 2020. This brings Ukraine close, figure-wise, to more developed nations such as Canada, Netherlands, and South Korea. It seems like Ukraine is yet another nation whose adoption of Bitcoin and other cryptocurrencies is on the rise.
Unfortunately, the rising popularity of cryptocurrencies also means the more wide-spread of crypto for such nefarious purproses.