Ukraine Dismantles Kyiv Crypto Scam With Up to $1 Million Monthly Turnover

Overview

• Ukrainian investigators say they shut down a network of fake crypto investment sites run from Kyiv and carried out 34 searches that produced more than 100 computers, over 100 phones, 79 SIM cards, a GSM gateway and 15 vehicles.
• The platforms showed fabricated trading dashboards to investors and then prompted users to approve a supposed ‘test’ wallet transaction that activated a wallet drainer allowing attackers to move tokens without private keys.
• Authorities accessed a Netherlands-hosted database that listed victim wallet addresses, amounts taken, passport and contact data, and internal messages that helped link the scheme across multiple countries.
• Investigators have identified 62 victims in more than 20 countries and say a 25-year-old IT specialist organised the operation, which reportedly handled up to $1 million in turnover at its peak; prosecutions are underway under Ukraine’s fraud law.
• The case highlights the growth of approval-phishing wallet drains, the cross-border nature of crypto fraud, and the challenge of quantifying stolen funds while authorities continue to identify participants and victims.