Ukraine Authorities Uncover $40 Million Crypto Pyramid Scheme
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- Ukrainian authorities have uncovered a crypto pyramid scheme that has bilked investors out of millions.
- Most of the ten under arrest were citizens of the Russian Federation.
- The organizers tried to hide their involvement after the invasion of Ukraine in February 2022.
The Security Service of Ukraine has discovered a large-scale pyramid scheme disguised as an investment project named “Life is Good.” The perpetrators reportedly offered victims the opportunity to become investors, rapidly growing their capital investments.
A pyramid scheme relies on the luring of new investors to pay off earlier investors. Fraudsters often promise high returns with little risk. They are fundamentally unsustainable and often leave victims with substantial losses.
According to the authorities, the perpetrators netted nearly $40 million and defrauded over a thousand people. The money was then transferred to the organizer’s crypto wallets and bank accounts. To use the service, the fraudsters developed their own web resource with the accounts of potential “investors.”
The fraudulent deals promised “investors” stable profits in the form of dividends from investing in the shares of promising world-class businesses. Additionally, the fraudsters “guaranteed” their clients “bonuses” in order to attract new clients.
Content retrieved from: https://beincrypto.com/ukraine-authorities-uncover-40-million-crypto-pyramid-scheme/.
