- Ukraine’s National Police and Security Service dismantled a network of fake crypto investment platforms operated from Kyiv.
- Investigators have identified 62 victims across more than 20 countries, including Germany, Poland, France, the UK, Canada, and Israel.
- The scammers blocked withdrawals and tricked victims into approving a “test” transaction that drained their wallets.
Ukraine’s National Police and Security Service announced Tuesday that they have shut down a network of fraudulent investment platforms that drained cryptocurrency from victims in over 20 countries, according to official statements. The operation was run from several offices in Kyiv and the surrounding region, staffed by a team recruited by a 25-year-old IT specialist.
Investigators have identified 62 victims so far, including citizens of Germany, Poland, Lithuania, Latvia, Spain, France, the UK, Canada, and Israel. The Security Service put the operation’s monthly turnover at up to $1 million at its peak.
The scheme began on Telegram, where the group advertised supposedly profitable crypto projects. Users who signed up connected a wallet and sent funds, while staff manually faked trading results to show climbing balances in each customer’s dashboard.
Withdrawal requests were blocked, and victims were told they needed to connect their main wallet and approve a small test transaction to verify the platform. That approval activated a drainer built into the site, which moved the assets to wallets controlled by the group.
Investigators traced server equipment in the Netherlands and accessed a database listing victims, wallet addresses, sums taken, and internal records. Officers conducted 34 searches across Kyiv and the region, seizing more than 100 computers, over 100 phones, 79 SIM cards, a GSM gateway, cash, and 15 cars.
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