Key facts
- Ukraine's National Police and Security Service have dismantled a crypto drainer network.
- The ring operated fake investment platforms from Kyiv, targeting victims in over 20 countries.
- The scheme involved advertising fraudulent crypto projects on Telegram.
- Victims were tricked into approving transactions that drained their crypto wallets.
- The operation's peak monthly turnover was estimated at up to $1 million.
- Authorities seized significant equipment and assets during searches in Kyiv and the surrounding region.
Ukrainian law enforcement agencies have successfully dismantled a sophisticated cryptocurrency drainer network operating from Kyiv. The National Police and Security Service announced on Tuesday that the ring utilized fake investment platforms to defraud individuals across more than 20 countries, including Germany, Poland, France, the UK, Canada, and Israel.
Investigators identified 62 victims and determined that the operation recruited over 46 Ukrainians to develop and manage the fraudulent platforms. The scheme began with advertisements on Telegram, promising high returns on crypto investments. Once users signed up and connected their wallets, the perpetrators faked trading activity to show escalating balances on a dashboard. When victims attempted to withdraw funds, their requests were blocked. They were then persuaded to approve a small "test" transaction, which was designed to transfer their assets to wallets controlled by the group.
The organizer, described as a 25-year-old IT specialist, allegedly oversaw an operation with a peak monthly turnover of up to $1 million. Authorities seized over 100 computers, 100 phones, 79 SIM cards, a GSM gateway, cash, and 15 vehicles during 34 searches conducted in Kyiv and its surrounding region. Server equipment located in the Netherlands, containing victim data, internal correspondence, and operational records, was also accessed by investigators.
The case is being prosecuted under Ukraine's criminal code, and authorities are continuing to identify all involved parties, additional victims, and the total amount stolen. This action follows Ukraine's recent move to place over $8.3 million in seized USDT into a state-run wallet, marking a significant step in managing confiscated cryptocurrency.