Ukrainian authorities dismantled a Kyiv-based crypto fraud network accused of draining wallets across more than 20 countries and moving up to $1 million monthly at its peak.
Key Points:
- Police have identified 62 victims and say the organizer recruited more than 46 Ukrainians.
- Fake investment sites used a hidden drainer after victims approved a small test transaction.
- Investigators found a Netherlands-hosted database containing wallet addresses, stolen amounts and personal data.
Kyiv Crypto Ring
Ukraine’s National Police and Security Service said that they had shut down several fake investment platforms operated from Kyiv and the surrounding region. Investigators said the organizer recruited more than 46 Ukrainians, while police have identified 62 victims from countries including Germany, Poland, France, the UK, Canada and Israel.
The Security Service described the organizer as a 25-year-old Kyiv IT specialist and said the scheme reached turnover of up to $1 million a month during peak periods. The group promoted supposedly profitable crypto projects through Telegram, then directed users to websites designed to resemble legitimate investment services.
After users connected wallets and deposited funds, operators manually displayed fictitious trading gains in customer accounts. Withdrawals were then blocked, and victims were asked to connect their main wallet and approve a small test transaction.
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RUSI Drainer Risks
Police said that transaction triggered hidden drainer code that gave the group access to the victim’s wallet and transferred assets to addresses under its control. Registration and verification also collected passport data, phone numbers, email addresses, passwords, logins and photographs.
Investigators located servers in the Netherlands containing the group’s database, including victim lists, wallet addresses, stolen amounts and internal correspondence.
Authorities conducted 34 searches in Kyiv and the surrounding region, seizing more than 100 computers, more than 100 phones, 79 SIM cards, cash and 15 vehicles.
The Royal United Services Institute has warned that gaps around virtual assets can enable money laundering, tax evasion and other illicit financial flows in Ukraine.
A 2025 RUSI taskforce report cited an expert estimate that stronger oversight could help Ukraine recover up to $10 billion, underscoring the wider financial stakes around crypto enforcement.
Ukraine had already taken a separate step in June, when more than $8.3 million in Tether (USDT) seized from an alleged hacking group was transferred to a state-controlled wallet. That marked the country’s first reported placement of confiscated crypto under state management.
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