Ukrainians to be tried for cryptocurrency fraud worth UAH 71 million

The Darnytsia District Prosecutor’s Office in Kyiv has filed an indictment against six members of a criminal group. The suspects intentionally evaded taxes, the press service of the department reports.

According to the investigation, the fraudsters used resources that allow them to convert cash and non-cash funds into cryptocurrency and vice versa. The financial transactions were carried out in violation of Ukrainian legislation and without reflecting the relevant transactions in the tax reports.

The criminals used the illegally obtained profits to purchase precious metals, real estate and land plots. According to the conclusion of the economic and forensic examination, the criminal actions of the fraudsters resulted in losses of UAH 71 million.

Earlier, within the framework of the same proceedings, more than 830 kg of bank silver bullion and cash worth UAH 50 million in different currencies — EUR 830 thousand, USD 470 thousand and UAH 460 thousand — were seized from the defendants. The total value of the seized property is over UAH 100 million.

Under Part 3 of Art. 28, Part 3 of Art. 212, Part 3 of Art. 209 of the Criminal Code of Ukraine, the suspects face up to twelve years in prison with confiscation of property.

Last month, law enforcement officers in Lviv region liquidated an international conversion center with a monthly turnover of UAH 600 million. According to investigators, a group of people provided services for converting virtual funds into cash and cryptocurrency. The fraudsters' clients were private entrepreneurs — tax evaders, individuals, and so-called «transit enterprises» that are part of other conversion groups. During 2020−2022, more than UAH 2.5 billion was transferred to the accounts of 20 such fictitious cells.