Ukraine Cracks Down on Kyiv-Based Crypto Drainer Ring

A fake investment platform network run from Kyiv, Ukraine, has been shut down by the National Police and Security Service. The operation involved staff recruiting over 46 Ukrainians to handle security, phones, and offices while developers kept the platforms online against blocking attempts. Investigators identified 62 victims across more than 20 countries, including Germany, Poland, France, the UK, Canada, and Israel.

According to the Security Service, the organizer of the operation was a 25-year-old IT specialist who used Telegram to pitch supposedly profitable crypto projects. Users were encouraged to connect their wallets and send funds for what they believed were investment projects. However, staff faked trading by hand, showing balances climbing in each customer's dashboard.

Withdrawal requests were blocked until victims approved a small 'test' transaction that handed over their wallets. This allowed the group to drain assets into controlled wallets, leaving victims locked out of their funds. Investigators traced server equipment in the Netherlands holding the group's database and seized more than 100 computers, phones, SIM cards, cash, and 15 cars during raids across Kyiv and the surrounding region.

The operation had a turnover of up to $1 million per month at its peak, with victims' personal details harvested for registration and verification. The case is proceeding under Part 5 of Article 190 of Ukraine's criminal code, with police still identifying further suspects and victims. The total sum stolen remains unknown.