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first_img Ukrainian police dismantle cryptocurrency scam, with monthly thefts reaching 1 million USD

The Ukrainian police and the Security Service of Ukraine (SBU) recently dismantled a scam network that used a fake investment platform to steal cryptocurrency. This network disguised itself as an investment platform website, luring users to connect their main cryptocurrency wallets and approve a small test transaction when withdrawing funds. Subsequently, it used a "wallet stealer" hidden within the website to automatically transfer user funds to wallets controlled by the operators, kicking victims off the platform. Investigators have currently confirmed 62 victims, with over 46 Ukrainian citizens involved, and the network could steal up to $1 million per month.The police stated that the false profits displayed on the platform are part of the scam, with operators manually creating transactions and adjusting user account balances to create the illusion of investment growth. In addition to cryptocurrency, the platform also collected victims' passport information, phone numbers, email addresses, login credentials, and photos during the registration and identity verification process. The main organizer of the network is a 25-year-old IT expert who recruited over 46 Ukrainian citizens and operated multiple offices in Kyiv and surrounding areas, with members responsible for building and maintaining fake websites, contacting potential victims, and providing security.Victims come from multiple countries, including Germany, Poland, Lithuania, Latvia, Spain, France, the United Kingdom, Canada, and Israel. The police traced the gang's server equipment located in the Netherlands and obtained a database stored there, which included a list of victims, cryptocurrency wallet addresses, suspected stolen amounts, internal communications, and platform operation information. The Ukrainian police and SBU subsequently executed 34 searches in Kyiv and surrounding areas, seizing over 100 computers, more than 100 mobile phones, 79 SIM cards, documents, cash, and 15 vehicles.

first_img Ukrainian police dismantled a gang in Kyiv that stole cryptocurrency wallets, with a monthly turnover reaching up to 1 million USD

On Tuesday, the Ukrainian National Police and Security Service announced the dismantling of a fake investment platform network based in Kyiv. This gang stole cryptocurrency from users in over 20 countries through built-in wallet theft tools. Investigators have currently confirmed 62 victims, including citizens from Germany, Poland, Lithuania, Latvia, Spain, France, the UK, Canada, and Israel. The organizers recruited more than 46 Ukrainians, operating multiple offices in Kyiv and surrounding areas, where developers were responsible for building the fake platform and resisting bans, while other members handled customer service and security.According to the Ukrainian Security Service, the organizer is a 25-year-old IT expert, and the gang's peak monthly revenue reached up to $1 million. The scam began with advertisements for cryptocurrency investment projects on Telegram. After users registered, they connected their wallets and invested funds, while gang members manually forged transactions to show a continuously increasing balance in the user backend. When users requested withdrawals, the platform required them to connect their main wallet and approve a small "test" transaction under the pretext of verification. This authorization immediately triggered the built-in theft tool on the website, transferring assets to wallets controlled by the gang and locking the victims' accounts.Investigators tracked down server equipment storing the gang's database in the Netherlands, which recorded victim information, wallet addresses, stolen amounts, internal communications, and platform operation data, as well as user passports, phone numbers, emails, login passwords, and photos. Police executed 34 searches in Kyiv and surrounding areas, seizing over 100 computers, more than 100 mobile phones, 79 SIM cards, one GSM gateway, cash, and 15 vehicles.
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