Ukraine uncovers crypto exchange network in alleged $10 million fraud

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Ukraine uncovers crypto exchange network in alleged $10 million fraud — Ukraine raids crypto network

Ukrainian law enforcement authorities have uncovered a network of cryptocurrency exchange offices suspected of systematically defrauding customers. During searches across seven regions of the country, investigators seized more than $480,000 in cash.

According to a Telegram post by Ukraine's Prosecutor General Ruslan Kravchenko, the organizers created a website, accepted customer orders, and operated exchange offices across multiple regions, presenting themselves as a legitimate provider of fiat and cryptocurrency exchange services.

After submitting an order, customers received an order number, a confirmation code, and the address of an exchange office. However, after handing over cash, they allegedly received neither cryptocurrency nor a refund. Instead, staff cited technical issues and repeatedly delayed payments.

More than $480,000 seized during searches

As part of the investigation, law enforcement officers carried out a controlled purchase. According to investigators, the suspects used the same scheme to fraudulently obtain about $1,200, supporting allegations that the operation was systematic.

Police conducted more than 20 searches across seven regions of Ukraine. Investigators seized cash in multiple currencies with a total value exceeding $480,000.

Authorities are now preparing formal charges against the alleged participants under Ukraine's fraud laws covering the acquisition of property by deception committed by a group acting in concert. Investigators are also working to identify everyone involved, from the suspected organizers to those who directly accepted customers' funds.

Media link investigation to Money 24/7

Law enforcement agencies have not officially identified the company involved. However, local reports suggest the investigation concerns the Money 24/7 exchange network.

Several days before the Prosecutor General's announcement, journalists at Bihus.Info published an investigation alleging that the company operated without the required licenses before delaying or failing to return customers' money and cryptocurrency. According to the report, total customer claims could reach about $10 million.

The investigation also alleges that the company's owner, Andrii Smyrnov, acknowledged substantial debts and admitted using funds from new customers to repay earlier clients. Journalists compared the business model to a Ponzi scheme.

Large-scale financial fraud cases continue to emerge beyond the crypto sector as well.

In June, former Aspiration Partners co-founder Joseph Sanberg was sentenced to 14 years in prison over a scheme that prosecutors said caused at least $248 million in losses to investors and lenders. Prosecutors alleged that the defendants inflated the company's revenue, falsified financial documents, and misrepresented loan collateral.

Earlier, Christopher Alexander Delgado, founder of a Florida-based crypto investment firm, pleaded guilty in a $250 million fraud case.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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