Fake exchanges and $1.2 million in damage

The Security Service of Ukraine uncovered a large-scale international crypto scam

The Security Service of Ukraine, together with the National Police of Ukraine and law enforcement agencies of the Baltic states, dismantled a large fraudulent scheme targeting citizens of the European Union. According to the investigation, the perpetrators, posing as investment consultants, offered foreigners to invest in supposedly promising crypto projects, promising stable returns and “exclusive access” to rapidly growing digital assets.

Organized structure and scale of the operation

A key feature of the scheme was its organization. In Dnipro, law enforcement officers detained the alleged organizer of the criminal group and ten of his accomplices. Investigators believe the structure operated systematically and professionally, with a clear division of roles – from call center operators to technical specialists responsible for creating and maintaining fake platforms.

According to preliminary estimates, in just one year the participants of the scheme obtained at least $1.2 million in illegal income. Law enforcement officials do not rule out that the actual amount of damage may be higher as all victims are identified.

How the scheme worked through fake crypto exchanges

To implement the fraud, four call centers were created. Their employees called citizens of EU countries, introducing themselves as financial analysts or managers of investment platforms. Potential victims were told about “new opportunities” in the digital asset market and persuaded to register on an electronic trading platform.

The key tool of deception was a fake crypto exchange interface. Users were shown asset growth charts, price movements, and supposedly accrued profits. Visually, such platforms did not differ from real trading services; however, all data were fully generated by the fraudsters and had no connection to actual trading.

Psychology of involvement: from small deposits to large sums

The scenario was built according to the classic model of financial pyramids and investment scams. At the first stage, the client was offered to make a relatively small deposit. Shortly afterward, “profit” appeared in the personal account – fictitious dividends creating the illusion of successful investments.

This built trust and pushed the victim to increase investments. Once the transferred amounts became significant, communication with the client stopped: accounts were blocked, phone numbers became unavailable, and the “managers” disappeared.

Funds were transferred to crypto wallets controlled by the members of the criminal scheme, making tracking and recovery more difficult.

Searches and seized assets

As part of the investigation, about 40 searches were conducted in office premises and at the residences of the suspects. Law enforcement officers seized mobile phones, computer equipment, data storage devices, and cash totaling approximately ₴21 million equivalent. According to the investigation, these funds may have been obtained illegally.

Legal qualification and possible punishment

The detainees were notified of suspicion under several articles of the Criminal Code of Ukraine:

• Parts 1 and 2 of Article 255 – creation and leadership of a criminal organization, as well as participation in it;
• Parts 4 and 5 of Article 190 – fraud on an especially large scale using electronic computing equipment;
• Part 3 of Article 209 – legalization (laundering) of property obtained by criminal means on an especially large scale.

The suspects face up to 12 years of imprisonment with confiscation of property. Investigative actions are ongoing, and law enforcement authorities are identifying all victims and possible additional participants in the scheme.

International Context

This case highlights the growing problem of cross-border crypto fraud. The use of digital assets, anonymous wallets, and fake online platforms allows criminals to operate across multiple jurisdictions simultaneously. Therefore, international cooperation between law enforcement agencies is a key factor in uncovering such crimes.

The story of fake exchanges once again demonstrates that in the field of cryptocurrencies, high potential returns are always accompanied by high risk – especially when it comes to “guaranteed profit” and aggressive phone sales.