An illegal cryptocurrency exchanger was exposed in Ukraine

Representatives of the Bureau of Economic Security of Ukraine exposed a large-scale international money laundering scheme and an illegal cryptocurrency exchanger. The group of fraudsters laundered the proceeds of crime and converted the funds into cryptocurrency. Hundreds of individuals and large companies used the services of the criminals.

«The criminal group was detected thanks to the interaction and cooperation of the BES employees with EU experts. According to the FATF and other EU organizations, transactions with virtual assets are widely used not only for organized crime but also for terrorist financing. Therefore, among the main tasks of the BES is to analyze the risks associated with the existence of illegal activities of virtual asset exchange service providers, to identify and stop the activities of conversion centers and participants in the virtual currency market,» said BES Director Vadym Melnyk.

The BES detectives searched the premises where illegal cryptocurrency exchange activities were carried out and seized cash totaling UAH 152 million. It should be noted that this is the first case of illegal use of cryptocurrencies in the new year. In 2022, Ukrainian law enforcement agencies completed investigations into more than 600 cases involving digital assets. «Cryptocurrencies offer great opportunities for economic development, but criminals are also successfully taking advantage of this tool,» said Yevhen Panchenko, Head of the Operational and Analytical Support and Open Source Analysis Division of the Cyber Police Department.