- Moscow police arrest organizers of a cryptocurrency scam involving 150 victims using crypto terminals across Russia.
- Criminals controlled fraudulent transactions through an admin console, siphoning funds directly into their own crypto wallets.
In Moscow, law enforcement authorities have arrested the orchestrators of a scheme that defrauded 150 citizens through cryptocurrency terminals located across various regions of Russia, according to Irina Volk, the official spokesperson for the Russian Ministry of Internal Affairs.
Arrests and Investigations in Moscow
During a series of operational and investigative activities, police detained the suspects in Moscow.
“During operational search activities, police detained suspects in Moscow. During searches, an administrator console was found on one of the organizer’s computers, which was used to operate crypto ATMs. Officers took measures to centrally block the network from operation,” Volk wrote on Tuesday on his Telegram channel.
Searches led to the discovery of an administrator console on one of the computers, which was used to control the network of cryptocurrency machines. The police took centralized measures to block the operation of this network.
The suspects had installed more than 20 cryptocurrency terminals across several Russian regions. Influenced by telephone fraudsters, victims deposited their funds into these terminals, which were then credited to the cryptocurrency wallets controlled by the criminal organization.
The leader of the group, originally from Ukraine, would later collect the cash deposited by citizens at these terminals. He would then exchange the cash for cryptocurrency at an exchange point, transferring the equivalent amount to his supervisors in Ukraine, while retaining a percentage of the transaction as his earnings.
“The leader of the group, originally from Ukraine, then took the money deposited by citizens in the cryptomats and then took it to an exchange office, where he was credited with cryptocurrencies in an equivalent amount and transferred them to his Ukrainian custodians, keeping a percentage of the transaction as profit,” the representative of the Ministry of Internal Affairs explained.
Among the victims was a participant of the Special Military Operation, who was in Moscow for rehabilitation after being wounded. Following instructions from strangers, he transferred over 2.5 million rubles to so-called ‘safe accounts.’ Overall, preliminary data suggest that more than 150 individuals suffered from the fraudulent activities.
Police Seizures and Legal Proceedings
Police confiscated the terminals located in Moscow, along with large sums of money, mobile phones, and other items of evidentiary value. A criminal case for fraud (part 4 of article 159 of the Criminal Code of the Russian Federation) is currently under investigation.
One suspect has been detained, while others have been placed under a restraint order requiring them to appear as needed.
This incident underscores the vulnerabilities associated with unregulated financial activities and emphasizes the importance of vigilance in the burgeoning field of digital finance.
