A network of fake crypto exchanges was exposed in Ukraine — UAH 20 million in cash was seized during searches in seven regions

Law enforcement officers have uncovered a fraudulent network of crypto exchanges operating in seven regions of Ukraine. During the searches, cash in various currencies totaling over 20 million hryvnias was seized.

This was reported by the Prosecutor General of Ukraine Ruslan Kravchenko.

Under the guise of a currency and crypto-asset exchange service, the participants in the scheme took over citizensʼ funds. The scheme was disguised as a legal business — they created their own website, application system, confirmation codes, and a network of exchange points, and communicated via Telegram.

After completing the application, the client was contacted by a manager who provided the application number, individual confirmation code, exchange point address, and other details.

After the cash was transferred, customers received neither crypto assets nor a refund. Instead, they were given formal explanations and the process was delayed indefinitely.

According to the Prosecutor General, while documenting the crime, network members seized UAH 50 000 through a similar scheme as part of an operational purchase.

Currently, law enforcement officers are preparing to charge the participants in the scheme with fraudulent appropriation of someone elseʼs property, and the investigation is identifying all those involved in its organization.

"In the modern financial world, scammers also look "modern". But fraud remains fraud, even if it is presented as a new crypto exchange. If a person transfers money and receives nothing in return, then this is not a business model, but the subject of criminal proceedings," the Prosecutor General emphasized.

• Before that, Bihus.Info published an investigation into the Money 24/7 exchange network — it was actively promoted on social networks and was a partner of the “Dynamo Kyiv” football club. As the journalists found out, under this scheme of fake crypto exchangers, “Money 24/7” clients could lose about $10 million.
• The owner of the network Andriy Smirnov admitted that payments to previous clients were made at the expense of new ones, and also confirmed the companyʼs debts.

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