New Era of Corruption: How Cryptocurrency Became a Means of Bribery in Ukraine
4 April 17:01
ANALYSIS
Law enforcement officers recently exposed an employee of the State Border Guard Service who tried to bribe an employee of another law enforcement agency in cryptocurrency.
According to the investigation, the border guard handed over USDT worth $355 thousand to the law enforcement officer through an intermediary, hoping that the latter would not pay attention to his illegal activities. It is indicated that the entire amount was transferred to the intermediary’s crypto wallet, then cashed out and handed over to the law enforcement officer.
The border guard was served a notice of suspicion under Part 1 of Article 369 of the Criminal Code of Ukraine. The intermediary and the law enforcement officer were notified of suspicion under Article 368(4) of the Criminal Code of Ukraine in February.
In fact, crypto bribes are becoming increasingly popular in Ukraine. Read more about what cryptocurrency is, where it is used and when Ukrainians started using it in the article by "Komersant Ukrainian".
What is cryptocurrency and when did it become popular in Ukraine?
Cryptocurrencies are digital or virtual money that use cryptography to secure transactions and control the creation of new units. They operate in a decentralized network without the need for intermediaries such as banks or government agencies. Cryptocurrencies are rapidly changing traditional financial structures, opening up new opportunities for users and businesses.
How did cryptocurrencies appear in the world in the first place?
The first cryptocurrency was Bitcoin, which was proposed by an anonymous person or group of people under the pseudonym Satoshi Nakamoto in 2008. For the first time, this digital currency was described in a publication that pointed to its ability to replace traditional money without the need for centralized control.
“Bitcoin was created as an alternative to traditional financial instruments that allows people to make transactions without the involvement of banks and governments,”
– explains Ivan Petrov, a cryptocurrency expert.
Since then, many other cryptocurrencies have emerged, such as Ethereum, Litecoin, Ripple, and others, which are often used for various purposes, including financial transactions and the development of blockchain technology.
Where is cryptocurrency used?
Cryptocurrencies are used in many areas, such as:
- Investment and trading – Cryptocurrencies have become popular tools for investors looking for an alternative to traditional markets. Bitcoin and other cryptocurrencies are speculated on cryptocurrency exchanges.
- Money transfer – Due to their decentralized nature, cryptocurrencies allow for fast and secure international transfers, bypassing the high fees of traditional banks.
- Networks for decentralized applications – For example, Ethereum allows you to create decentralized applications (DApps) that use the blockchain to automate transactions without the participation of central servers.
- Online payments – Many online stores and services accept cryptocurrencies as a method of payment for goods and services.
“Cryptocurrencies have not just become an alternative to traditional money, they have allowed us to create a new economic ecosystem in which every user can become a participant in the process without the need to trust centralized organizations,”
– says Elena Ivanova, a financial technology specialist.
When did cryptocurrency become popular in Ukraine?
Cryptocurrencies have gained considerable popularity in Ukraine due to their innovative technologies and the ability to make anonymous and fast transactions. It has become an integral part of the country’s digital economy, attracting the attention of investors, entrepreneurs, and users looking for new opportunities to save and grow their money. However, like any innovation, cryptocurrencies have their own risks, which are important to understand before you start using them.
Cryptocurrencies have been gaining popularity in Ukraine since 2013, when the first bitcoin exchanges started operating in the country. However, the real boom began in 2017, when the price of bitcoin skyrocketed and it became the subject of widespread discussion in the media and social media.
“In 2017, many Ukrainians started actively investing in cryptocurrencies when bitcoin reached record heights. Many saw it as an opportunity to make quick money,”
– says Oleksandr Borovyk, financial markets analyst.
Since then, cryptocurrencies in Ukraine have become a popular tool for investment and trading, and have been actively used in various business sectors, including financial technology, the IT sector, and even charity.
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Reasons for the popularity of cryptocurrency in Ukraine
1. Investor interest and earning potential
One of the main reasons why cryptocurrencies have become so popular in Ukraine is their attractiveness to investors. Since 2017, when bitcoin reached record prices, Ukrainians have been actively investing in cryptocurrencies, hoping for a big profit.
“The high volatility of cryptocurrencies allows you to make significant profits in a short period of time. For many Ukrainians, this has become an opportunity to increase their savings,”
– explains Viktor Kovalenko, financial technology analyst.
Bitcoin and other cryptocurrencies have enabled ordinary users to become part of the global financial system without the restrictions that exist in traditional markets.
2. Business opportunities
Cryptocurrencies are also actively used in the business environment. They allow entrepreneurs to reduce the cost of international payments, shorten transaction times, and provide greater transparency in financial transactions.
“For small and medium-sized businesses, cryptocurrencies are a profitable tool for conducting transactions. They allow you to bypass the fees of traditional banks and work without borders,”
– says Olena Petrivna, business consultant.
Risks of using cryptocurrencies
Despite its advantages, cryptocurrency has a number of serious risks that should be considered before using it.
1. Market volatility and unpredictability
Cryptocurrencies are known for their high volatility. This means that their value can change significantly in a short period of time, which creates a risk of significant financial losses.
“Investing in cryptocurrencies requires a lot of caution. Exchange rate fluctuations can lead to an investor losing a significant portion of their funds in a matter of hours,”
– warns Iryna Sydorenko, a financial expert.
Such sharp changes in price make cryptocurrency a less stable tool for long-term savings.
2. Lack of regulation
In Ukraine, cryptocurrencies do not have a clear legal status, which creates additional risks for users and investors. Without reliable legal regulation, cryptocurrency transactions can be associated with fraud, and the lack of standards can lead to unforeseen financial problems.
“In Ukraine, there are currently no clear legal regulations regarding cryptocurrencies. This means that users may face legal problems if their interests are violated,”
– emphasizes Volodymyr Novak, a lawyer specializing in financial technologies.
3. Risks of cybercrime
The use of cryptocurrencies is associated with significant cyber threats. Vulnerabilities in cryptocurrency exchanges or crypto wallets can lead to theft of funds.
“Internet fraudsters are finding new ways to steal cryptocurrency. Hacking crypto wallets, phishing attacks and other methods allow criminals to gain access to large sums of money without the possibility of returning these funds,”
– says Pavlo Buriak, cybersecurity specialist.
Cryptocurrency users should be very careful and use additional security measures to protect their assets.
4. Increased risk of losing access to assets
If a user loses their private key or access to a crypto wallet, they may lose access to their funds forever. Unlike traditional bank accounts, in the case of cryptocurrencies, there is no way to contact customer support to restore access.
“With cryptocurrencies, there are no mechanisms to restore access to your funds if you lose access to your wallet. This is an important aspect to consider,”
– warns Igor Sedin, a blockchain technology specialist.
Bribes, cryptocurrency and law enforcement
Due to its anonymity and decentralized nature, cryptocurrency is becoming an increasingly popular tool for illegal financial transactions, including bribery. Ukrainian law enforcement officers have repeatedly uncovered cases where bribes were transferred or received in cryptocurrency. The lack of effective regulation in this area makes cryptocurrency an attractive tool for criminals. Below are some examples of such crimes in Ukraine.
1. Border guard and law enforcement officer: $355,000 in cryptocurrency
One of the most high-profile cases occurred in 2025 when law enforcement officers detained an employee of the State Border Guard Service who tried to bribe a representative of another law enforcement agency in cryptocurrency. According to the National Anti-Corruption Bureau of Ukraine (NABU), the border guard handed over USDT cryptocurrency to the law enforcement officer through an intermediary for a total of $355,000. In return, he hoped that the law enforcement officer would “turn a blind eye” to his illegal activities. The bribe was transferred to the intermediary’s crypto wallet, then converted into cash and transferred to the recipient.
“This case is an example of how new technologies are used to commit corruption. Cryptocurrencies allow bypassing traditional control mechanisms, which makes them attractive to those who want to avoid punishment for their actions,”
– commented Andrii Kravchuk, NABU representative.
2. Corruption scheme in Odesa port: bitcoins instead of money
In 2022, law enforcement officers in Odesa uncovered a large-scale corruption scheme involving seaport officials. According to the investigation, port employees received bribes for assistance in customs clearance of goods, and part of the money was transferred to them in bitcoins. In particular, for one “service”, port workers could receive 20-30 bitcoins, which at the time amounted to about $1 million. The operation was carried out after several months of surveillance and documentation of corruption.
“Cryptocurrencies are actively used in such schemes because of their anonymity. Law enforcement officers are working on creating mechanisms to combat this type of criminal activity,”
– said Yuriy Sydorenko, Head of the Economic Crime Department of the National Police of Ukraine.
3. City official and criminal group: $150,000 in cryptocurrency
Another interesting case was recorded in 2021 in Kyiv, where law enforcement officers exposed a group of people who organized a bribery scheme in the city hall. A city official, receiving inflated payments for permits, demanded bribes in cryptocurrency. All transactions were recorded in crypto wallets, which complicated the investigation process. According to the investigation, the amount of bribes in cryptocurrency was about $150,000.
“This case has become a clear example of how officials use the latest technologies to avoid detection of their corrupt activities. However, thanks to our cooperation with cryptocurrency experts, we managed to uncover this scheme,”
– said Oleksandr Sirenko, Head of the Anti-Corruption Department.
4. International scheme: bribes through cryptocurrency to avoid punishment
In 2020, Ukrainian law enforcement officers, together with international partners, solved a major case of international bribery involving cryptocurrency. A group of people from Ukraine with ties to criminal groups abroad organized a mechanism for transferring bribes to foreign officials through the bitcoin network. The total amount of bribes was over $2 million in bitcoin. The operation was carried out in the framework of international coordination and with the use of specialized programs for tracking cryptographic transactions.
“Thanks to the cooperation between various law enforcement agencies, we were able to expose a scheme that worked not only in Ukraine but also abroad. Tracking cryptocurrency transactions has become an important tool in the fight against international bribery,”
– said Sergii Kozak, Head of the NABU’s International Department.
Thus, such cases demonstrate the growing role of cryptocurrency as a tool for bribery in Ukraine. On the one hand, cryptocurrencies offer anonymity and speed of transactions, which makes them attractive to those who want to circumvent traditional control mechanisms. On the other hand, law enforcement agencies are actively fighting corruption and financial crimes using the latest technology and specialized tools to track cryptocurrency transactions. The situation requires further work to improve legislation and strengthen regulation of the cryptocurrency market to minimize risks.
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