In Ukraine on Monday, police arrested a criminal group that allegedly extorted $250,000 in stablecoin Tether (USDT) from a young entrepreneur by posing as law enforcement officials and threatening him with criminal charges for a fabricated crime.
The four suspects, who were detained by cyber police and the Department of Internal Security of the National Police, face up to 12 years in prison, according to a statement.
In May, the 20-year-old online business founder reported to police that unknown individuals had impersonated law enforcement officers.
It’s alleged the group intimidated the entrepreneur, accusing him of collaborating with Russia and threatening him with a lengthy prison sentence for treason. They offered to "settle the issue" in exchange for $250,000, which they demanded to be transferred in crypto.
The entrepreneur, fearing legal repercussions, complied with the demands and transferred 250,000 USDT to a crypto wallet controlled by the group. The criminals then quickly moved the stolen funds through a crypto exchange, per the statement.
Cyber police officers tracked the movement of the crypto assets, identifying the suspects who had no actual ties to law enforcement. With the assistance of the Kyiv City Prosecutor's Office, investigators from the State Police in Kyiv conducted a coordinated operation to apprehend them.
Searches were carried out across Kyiv, Kyiv region, and Cherkasy region, targeting the homes and vehicles of the suspects and their family members. Authorities seized bank cards, computer equipment, mobile phones, luxury cars, fake journalist IDs, ammunition, and cash.
Ukraine police struggle with frequent cases of high-profile crypto crime. In July, Decrypt reported that four men were arrested for kidnap and murder in a case that involved the theft of $170,000 in Bitcoin. A July report from Europol highlighted a Ukrainian cryptojacking scheme that covertly mined over $1.95 million in various crypto.
Ukraine also hosts plenty more traditional crypto scams. In June, authorities detained 14 people who were working as an organization to run a traditional call center scam operation.
In 2023, the European Union provided Ukrainian officials from several law enforcement departments with training to help them trace crypto and better investigate criminal cases involving the asset class.
While crime is a challenge, Ukraine is also one of the most enthusiastic adopters of crypto. In the most recent 2023 report, Chainalysis ranked Ukraine just behind the U.S., Vietnam, Nigeria, and India but well ahead of Brazil (9th). UK (14th), Japan (18th), and Canada (19th).
Edited by Sebastian Sinclair