Kyiv Police Crack Down on Crypto Scam Ring Extorting Fake Debts

Criminal Network Apprehended in Kyiv

According to Главком: Law enforcement in Kyiv has arrested seven members of a criminal group that, since 2023, has been extorting Ukrainian citizens for non-existent cryptocurrency debts. The group operated through call centers and bot farms, causing losses estimated at approximately 5 million hryvnias. The suspects were detained by investigators from the Holosiivskyi District Police Department of the Kyiv National Police, working in conjunction with cyber police, as part of an investigation overseen by the Holosiivskyi District Prosecutor's Office.

The criminals offered online loans in violation of the law, using the web resources Bitcapital and Crypsee. These loans were denominated in the Tether cryptocurrency. The National Bank of Ukraine confirmed the illegality of this service's operations. The group masked its activities under the guise of supposedly foreign companies registered in the United Kingdom and Cyprus. Among the victims are servicemen of the Armed Forces of Ukraine. This case highlights the growing sophistication of financial fraud in the region, which often exploits digital assets to evade detection.

Methods of the Criminal Operation

To carry out their schemes, the group established a call center in the city of Dnipro, where a team of two to six individuals could simultaneously target a single victim. They employed cyberbullying tactics, including the use of SMS bombers. The perpetrators utilized bot farms equipped with nearly 6,000 SIM cards from Ukrainian mobile operators, supported by uninterruptible power supplies. The organization even created its own internal security service to protect its interests.

As a result of 44 authorized searches conducted in the Dnipropetrovsk region and Kyiv, authorities seized the following evidence:

• over 80 mobile phones
• computer equipment
• cash
• handwritten notes
• document copies
• stamps
• 13 SIM banks
• over 5,000 SIM cards

Investigators analyzed the cryptocurrency wallets that received payments and identified the IP addresses used to make threatening calls and send messages.

The seven group members have been formally notified of suspicion under Part 3 of Article 355 and Part 4 of Article 189 of the Criminal Code of Ukraine. A preventive measure of detention with the possibility of bail has been applied. They face up to 12 years of imprisonment with property confiscation. More than 1,500 individuals may have been affected by the group's illegal activities.

Kyiv police reported that 'bots were used to generate and disseminate humiliating content using the data and photographs of victims, their relatives, and colleagues, as well as to systematically make threatening phone calls.'

Victims are encouraged to contact authorities via email at [email protected] or by phone at (044) 363 19 00.

The officers involved in this case emphasize the critical importance of combating cybercrime, especially given the modern challenges society faces. This situation serves as a stark example of the scale and danger posed by such criminal schemes, which threaten not only the financial security of citizens but also their psychological well-being. It is vital for victims of such actions to know they can seek help from specialized services.

The recent arrest of a criminal group in Kyiv highlights the increasing prevalence of sophisticated financial fraud schemes in Ukraine. Similarly, a recent case involving a teenage hacker demonstrates how young individuals are becoming entangled in cybercrime, leading to significant financial losses. To learn more about the implications of such illegal activities, read about the postal terminal fraud case that caused damages amounting to 500,000 hryvnias.