Ukrainian Authorities Arrests Suspects Running Fake Crypto Exchanges

Ukraine Crypto Fraud

The nation’s federal police force announced that four individuals were arrested for running fake cryptocurrency exchanges by Ukrainian authorities.

The suspects were arrested for operating as much as six fraudulent cryptocurrency exchange platforms claimed by the National Police of Ukraine in a press release.

Websites were built to mock legitimate cryptocurrency exchanges, targeting investors that were interested in purchasing tokens. According to the police, victims will be asked by the suspects to transfer funds into digital wallets registered under forged identification documents through the fraudulent trading sites.

Officials, later on, confiscated flash drives, computers, bank cards and mobile phones that were used by the suspects as part of the investigation. The Ukrainian police started criminal proceedings under Section 3 of Article 190 of Ukraine’s Criminal Code, regarding the statements.

Following a prior move to form a new working group to regulate cryptocurrencies, this move ranks one of the first major efforts by the nation to police its domestic crypto ecosystem.

Oleksandr Turchynov, chief of National Security and Defense Council, stated that a shortage of regulation around the tech is a threat to Ukraine’s economy and security.

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