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Four Persons Arrested by Ukranian Police for Crytocurrency Exchange Fraud

 

Four persons have been arrested by the Ukranian Police on suspicion of operating six fraudulent cryptocurrency exchanges. The authorities have stated that the alleged culprits established exchanges using a custom CMS (content management setup), and won users over through review websites, which they had injected with phony positive ratings. 

 

The websites the suspects deployed include swapex.net, moneycraft.info, wowex.online, likechange.biz, myexchanger.lv, iconvex.net. All of the websites are currently offline, with some domains redirecting to irrelevant websites.

 

Basically, they built what appeared to be legit websites focused on facilitating cryptocurrency exchange. They received money into eWallets registered under fake identities which they used to siphon money off users. This is fairly elementary, although the fake ratings the accused obtained for their websites might have helped them gain traction.

 

Police authorities are currently uncertain as to the number of websites the accused operated, although police officials have said they expect more websites to be uncovered. The police are urging users to come forward if they were duped, in hopes of providing the investigation some direction. The amount of money duped by the accused is also not yet clear.

 

Several police departments collaboratively worked towards nabbing the suspects, three of whom are reported to be between the ages twenty to twenty six are being charged with six counts of fraud. The police raided the suspect`s residence and has confiscated several credit and debit cards, hard drives, phones, flash drives, along with other computer equipment.

 

Ukraine, which has been dubbed as the wild east of cryptocurrencies has been in the news infrequently, with they talk about regulation of cryptocurrencies. As it stands, cryptocurrencies in Ukraine are a grey zone, neither legal nor illegal. A draft proposal to regulate cryptocurrencies was put forward in October 2017, although nothing has materialized yet.

 

According to a CCN report earlier in May, Ukraine is set to potentially legalize cryptocurrencies although it is in the early phase. Previously, Ukrainian authorities seized 1000s of graphic cards and mining equipment, worth about $4 million in connection with Russian bank accounts funding separatist regions of Donetsk and Lugansk. Most of the ambiguity can be attributed to the government in Ukraine, which has seemingly gone through a lot over the past few years

 

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