According to reports, Ukraine’s police have arrested members of a group running fake crypto investments. This group allegedly defrauded several individuals across Europe.
The criminal group had offices and customer care centers in several European nations. Also, they had thousands of workers operating these offices.
The NPU’s (National Police of Ukraine) cybercrime combatting division has uncovered a large international fraud scheme. Per multiple reports, the division has arrested five Ukrainians in relation to the case.
The fraudulent organization attracted victims with fake promises of high profits from investments. The investments ranged from stocks, securities, and bonds to crypto.
A press release stated that the group made over €200 million in a year from the scheme. In addition, the police argued that those behind the organization opened offices and customer centers all over Europe.
The agencies involved in the investigation include Europol, Eurojust, the Ukraine police’s Main Investigative Department, and the Office of the Prosecutor General.
In addition, law enforcement agencies from other countries like Germany, Latvia, Finland, Georgia, Spain, and Albania helped Ukraine with its investigation.
From reports, the group has been operating in Ukraine since 2020. The Cyberpolice noted that seven nations have already started court proceedings for the case.
Meanwhile, the group employed over 2000 people across various European nations in the customer care facilities the criminal organization established. Their primary objective was to persuade investors.
They misled investors into thinking they could generate massive returns through bonds, equities, stocks, and crypto. According to Europol’s estimates, the activities of the multinational gang impacted thousands, if not millions, of individuals worldwide.
Five Ukrainian Suspects Could Serve 8 Years In Prison
The group operated multiple platforms. They made it look like investors’ assets were increasing in value. Unfortunately, they never allowed these investors to withdraw their funds.
Five Ukrainians had set up three call centers based in Ivano-Frankivsk and Kyiv, the country’s capital. If convicted, they could face a jail term of about eight years, according to the law.
The police department first uncovered this fraudulent organization in August. Furthermore, the investigators searched the houses of those allegedly involved in the scam in Ukraine.
They also checked the residences of other associates of the organization who live in other nations. According to the Cyberpolice division, more than five hundred mobile phones and laptops were recovered during the search.
Crypto investors in the region were advised to be wary of purported crypto investment platforms. Crypto scams have been on the rise in 2022. Hence, the United States FBI (Federal Bureau of Investigation) warned Americans against investing in crypto Ponzi schemes.
Unfortunately, these fraudulent activities have painted the crypto industry in a bad light. As a result, several nations have begun sensitizing their citizens about these crypto scams and issuing regulations for crypto platforms.
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