Cryptocurrency criminals in Lviv region carried out frauds worth UAH 600 million per month

Law enforcement officers in Lviv region have liquidated an international conversion center with a monthly turnover of UAH 600 million. This was reported by the media portal Tvoje Misto. According to investigators, a group of people provided services for converting virtual funds into cash and cryptocurrency. The offenders also worked out schemes to reduce or avoid taxation on transactions.

«Under the procedural guidance of the Lviv Regional Prosecutor’s Office, a group of people was exposed for legalizing the proceeds of crime and tax evasion (Part 3 of Article 209, Part 3 of Article 212 of the Criminal Code of Ukraine),» the Lviv Regional Prosecutor’s Office said in a statement.

In total, there were more than 30 such groups. The prosecutor’s office said that the clients of the conversion center were private entrepreneurs, individuals, and so-called «transit enterprises» that are part of other conversion groups. In addition, during 2020−2022, more than UAH 2.5 billion was transferred to the accounts of 20 such fictitious cells.

During the searches of the criminals' offices and private homes, the police found and seized UAH 165 million in cash, more than 200 seals of fictitious foreign offshore companies, drafts of financial transactions, computer equipment and other material evidence. Investigative actions are still ongoing — law enforcement officers are conducting forensic examinations and coordinating the confiscation of property and arrest of participants in the financial scam.

The SBU has previously detained Ukrainians involved in international crypto investment f raud. As a reminder, the cybercriminals have opened call centers and customer service offices in several European countries, including Ukraine. The scammers promised potential investors high returns on investments in cryptocurrencies, stocks, bonds, and options. Hundreds of thousands of people around the world have suffered from the group’s illegal activities. Criminal proceedings have been initiated in seven countries.