In Ukraine, police arrested a criminal group on Monday accused of extorting $250,000 in Tether (USDT) from a young entrepreneur by posing as law enforcement officials.
The four suspects, detained by cyber police and the Department of Internal Security of the National Police, face up to 12 years in prison.
The incident dates back to May, when a 20-year-old online business founder reported that unknown individuals had impersonated law enforcement officers.
The group allegedly accused the entrepreneur of collaborating with Russia and threatened him with criminal charges for treason, a fabricated crime. To avoid a prison sentence, the entrepreneur complied with their demands, transferring $250,000 in USDT to a wallet controlled by the group.
Stolen funds recovered by Kyiv police
The suspects quickly moved the stolen funds through a crypto exchange, but cyber police officers tracked the movement of the assets. The investigation revealed that the criminals had no actual ties to law enforcement. Working with the Kyiv City Prosecutor's Office, investigators from the State Police in Kyiv conducted a coordinated operation to apprehend the suspects.
Searches were conducted across Kyiv, the Kyiv region, and the Cherkasy region, targeting the homes and vehicles of the suspects and their family members. Authorities seized a variety of items, including bank cards, computer equipment, mobile phones, luxury cars, fake journalist IDs, ammunition, and cash.
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High-Profile Crypto Crime in Ukraine
This case is one of many high-profile crypto crimes that Ukraine police have faced. In July, authorities arrested four men involved in a kidnap and murder case linked to the theft of $170,000 in Bitcoin. A Europol report from the same month highlighted a cryptojacking scheme in Ukraine that mined over $1.95 million in various cryptocurrencies. In June, 14 people were detained for operating a traditional call centre scam.
related reading：Bitcoiner Kidnapped and Murdered in Ukraine over $170K: It Might Be Time to Stop Flaunting Your Crypto Wealth
Balancing Crime with Crypto Adoption
Despite the challenges posed by crypto-related crime, Ukraine remains a prominent adopter of cryptocurrency. In a 2023 report by Chainalysis, Ukraine ranked just behind the U.S., Vietnam, Nigeria, and India in global crypto adoption, surpassing countries like Brazil, the UK, Japan, and Canada.
The European Union has recognised the need for better training in this area. In 2023, it provided Ukrainian officials from several law enforcement departments with training to help trace cryptocurrency and investigate criminal cases more effectively.
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