Under the pretext of providing training on cryptocurrency investments, they defrauded approximately 1,000 people out of $1.11 million, according to the country’s cyber police.
Four key suspects, including two organizers, were arrested following a series of raids in the Kharkiv and Dnipropetrovsk regions.
How the scheme worked:
– The suspects launched a massive advertising campaign on Facebook and Instagram, promising assistance from experienced traders and guaranteed quick profits from crypto investments;
– Managers gained the victims’ trust, ascertained their financial situation, and persuaded them to transfer money to crypto wallets under the scammers’ control. On a specially created fake platform, the scammers displayed charts of “successful trading balances”;
– In some cases, victims were allowed to withdraw a small amount. When they attempted to withdraw their principal, the withdrawal was blocked, and the scammers demanded new payments under the guise of “commissions” or “replenishing a reserve fund.”
According to the investigation, the scammers deliberately targeted the most vulnerable people—seniors, people with disabilities, and the seriously ill. For example, one of the victims, who was undergoing cancer treatment, transferred approximately 500,000 hryvnias (about 196,000 Moldovan lei) to the scammers—money she had set aside for her treatment. When the victims ran out of their own funds, they were persuaded to take out loans.
In addition, unsuspecting users were filmed giving positive video testimonials during “successful transactions”—the clips were then used in advertisements.
Those arrested face up to 12 years in prison with confiscation of property.
