Ukraine uncovers shadow crypto exchange network and seizes over $15 million
Ukraine's Prosecutor General's Office and Bureau of Economic Security (BES) have uncovered a shadow financial network used to conduct transactions involving cash and digital assets. During more than 30 searches, law enforcement officers seized cash in various currencies worth over 630 million hryvnias (about $15.2 million).
According to the investigation, the network operated across Ukraine and was allegedly used for tax evasion and laundering proceeds from criminal activity. Its participants also transferred money within the country and abroad, referring to such transactions as "rearrangements."
The financial operations were conducted without the required permits, while the resulting income was not recorded in accounting or tax records. The network operated through unlicensed currency exchange offices using a well-known brand name.
Searches conducted across 16 regions of Ukraine
According to investigators, the network's participants also used the exchange offices to convert cash into digital assets in violation of regulatory requirements. Law enforcement officers conducted more than 30 searches across 16 regions of the country.
As a result, authorities seized more than $15.2 million in various currencies, including Russian rubles. During the searches, participants in the network failed to provide documents confirming the lawful origin and proper accounting of the funds.
Law enforcement officers also seized computer equipment, mobile phones and unofficial records. Investigators expect to use the materials to establish the network's structure, identify its participants and trace the financial transactions it conducted.
The pretrial investigation is ongoing. The Prosecutor General's Office stressed that those involved are presumed innocent unless and until proven guilty by a court.
Ukrainian authorities investigate other crypto schemes
The latest operation is another major investigation by Ukrainian law enforcement into the use of digital assets in shadow financial schemes.
In September, the National Police and Security Service of Ukraine uncovered a network of fake investment platforms that investigators say was used to steal cryptocurrency from users in more than 20 countries.
At its peak, the network's monthly turnover reached $1 million. Potential victims were directed to fake investment platforms, after which their funds were converted into cryptocurrency.
Earlier, we reported that Ukrainian law enforcement uncovered a network of crypto exchange offices in July as part of an investigation into an alleged $10 million fraud scheme. Investigators linked the network to illegal digital asset transactions.
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