Ukrainian Authorities Arrest Four Suspects Tied To Fake Crypto Exchanges

Crime, News | June 25, 2018 By:

Ukrainian authorities have arrested four individuals suspected of running six fraudulent crypto exchanges.

The suspects allegedly launched at least six crypto exchanges and lured users by promoting the exchanges with fake positive ratings and online reviews. The suspects reportedly asked the victims to transfer funds into digital wallets registered under forged identification documents through the fake trading sites.

The police said the suspects had “special knowledge and skills in the field of programming” and “have created their own CMS-system for managing the content of exchange sites.” During the raid of the suspects’ homes, the police reportedly seized computers, flash drives, smartphones, and other devices. Police officers are currently investigating the seized equipment to determine the size of damages incurred to users.

According to a spokesperson for the Ukrainian National Police, “the list of sites is not complete.” The authorities are urging users to come forward if they were duped, in hopes of providing the investigation some direction.

Currently, cryptocurrencies in Ukraine are a grey zone, neither legal nor illegal. Three draft laws have been filed in the unicameral parliament since October but deputies have not made any significant progress towards their adoption. Last month, the Ukrainian National Securities and Stock Market Commission (SSMCS) announced that it would consider recognizing cryptocurrencies as a financial instrument.