The investigation into the fraud scheme lasted three years, according to bits.media.
The fraudsters used fake investment platforms to steal cryptocurrency. They targeted Russian-speaking residents of the US through Facebook adverts. Those who responded were contacted by ‘investment advisers’, who helped them open accounts, buy cryptocurrency and transfer it to specified addresses.
According to the investigation, after a few weeks or months, clients would lose access to their accounts whilst attempting to withdraw funds. In other cases, the victims were required to pay additional fees and taxes. The fraudsters would later contact the victims again and promise to help recover the stolen cryptocurrency.
Investigators claim that the fraudsters used server infrastructure and IP addresses in Ukraine and other Eastern European countries (possibly including Moldova). Some of the servers were hosted by US-based hosting providers.
Last week, law enforcement officers carried out investigative operations lasting several hours simultaneously across three time zones, the prosecutor’s office reported.
The public prosecutor’s office has estimated the total losses from the scam at tens of millions of dollars. Some victims lost all their savings. Law enforcement agencies managed to recover only around $300,000 of the stolen funds.
This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.
Follow our updates
Have information for the newsroom? Share it with Logos-Press
Comments
0No comments yet. You can start the conversation.
Comments are open to readers with a Logos Press account.
Sign in to comment