A 20-million-hryvnia pyramid scheme has been uncovered in Kyiv: details of the case
18 March 05:45
In Kyiv, law enforcement officials uncovered a large-scale Ponzi scheme whose organizers defrauded citizens out of more than 20 million hryvnias. The perpetrators offered investors supposedly lucrative investments in international projects and promised quick returns. This was reported by the Office of the Prosecutor General, according to "Komersant Ukrainian"
How the fraudulent scheme worked
According to the investigation, the scheme had been operating since October 2022. The organizers created a fictitious investment platform through which they attracted funds from citizens.
They sought out potential victims through:
- social media
- Instagram ads
- posts about “successful investments”
- blogger recommendations
To build trust, the scammers enlisted influencers who convinced their followers of the reliability of the investments.
How investors were misled
The scammers created special websites with personal investor accounts that displayed fictitious profits.
In reality:
- the money was immediately transferred to the organizers’ accounts
- no actual investments were made
- profits existed only as numbers on the website
The minimum investment to participate in the scheme was 50 USDT (cryptocurrency).
What is known about the organizers
One of the organizers—a 32-year-old Ukrainian citizen—has already been notified in absentia of suspicion of fraud on an especially large scale.
According to law enforcement officials:
- the suspect is currently in one of the European Union countries
- he faces up to 12 years in prison
- seizure of assets is also possible
Law enforcement agencies continue to identify other participants in the criminal scheme.
The investigation is ongoing
Police and cybercrime investigators are involved in exposing the pyramid scheme. Efforts are currently underway to identify all individuals involved and the affected investors.
Law enforcement officials urge citizens to be cautious and to verify investment offers, especially if they promise guaranteed quick profits.
How to spot a pyramid scheme
Experts advise paying attention to the typical signs of fraudulent investment schemes:
- promises of extremely high returns
- lack of licenses
- aggressive advertising on social media
- use of cryptocurrencies
- lack of real projects
If you suspect fraud, you are advised to contact law enforcement.
