Ukraine shuts down Kyiv crypto scam network moving up to $1 million monthly

Ukrainian authorities have dismantled a Kyiv-based cryptocurrency scam network that defrauded 62 identified victims across more than 20 countries, generating up to $1 million monthly. Led by a 25-year-old IT specialist, the group lured victims via Telegram to fake investment platforms, faked trading balances, and drained wallets using malicious test transactions. Raids across Kyiv yielded over 100 computers, 15 cars, and server data from the Netherlands.

Kyiv crypto scam shutdown

• ▪Ukrainian authorities are proceeding with the Kyiv crypto scam case under Part 5 of Article 190 of Ukraine's criminal code.
• ▪The organizer of the Kyiv crypto scam network, a 25-year-old IT specialist who moved with armed guards, recruited over 46 Ukrainians to run offices in Kyiv and the surrounding region.
• ▪Ukraine's National Police and Security Service announced on September 1, 2026, the shutdown of a network of fake crypto investment platforms run from Kyiv.

Fake investment platform mechanics

• ▪The Kyiv crypto scam network blocked withdrawal requests and used a built-in drainer to steal assets when victims approved a small "test" transaction to verify the platform.
• ▪The Kyiv crypto scam network advertised fake projects on Telegram, prompting users to connect wallets and send funds, while staff manually faked trading balances on customer dashboards.

Victim identification across countries

• ▪The Kyiv crypto scam network harvested victims' passport details, phone numbers, email addresses, logins, passwords, and photographs during the registration and verification process.
• ▪Investigators identified 62 victims of the Kyiv crypto scam network across more than 20 countries, including Germany, Poland, Lithuania, Latvia, Spain, France, the UK, Canada, and Israel.

Geographic scope of fraud

• ▪Investigators traced and accessed the Kyiv crypto scam network's database on server equipment located in the Netherlands.
• ▪The Kyiv crypto scam network generated a monthly turnover of up to $1 million at its peak.

Seized assets from raids

• ▪Ukrainian officers conducted 34 searches across Kyiv and the surrounding region, seizing over 100 computers, over 100 phones, 79 SIM cards, a GSM gateway, cash, and 15 cars.
• ▪Several vehicles and properties seized during the Ukrainian police searches were registered to the wives and relatives of the Kyiv crypto scam suspects.

Ukraine crypto crime enforcement

• ▪Ukraine moved over $8.3 million in seized USDT into a state-run wallet in June 2026, marking the first time the country placed confiscated cryptocurrency under state management.
• ▪The Royal United Services Institute estimated that tighter rules on cryptocurrency in Ukraine could recover at least $10 billion in stolen funds and lost tax revenue.

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