The Ukraine Police’s cybercrime combating squad has exposed a series of fraudulent crypto trading websites. Four people are suspected of offering the fake online exchange services and have maintained at least six platforms attracting cryptocurrency traders with misleading messages.
Ukraine police become more vigilant
Ukraine police has up their antennae having surfaced an organized group of scammers who created a group of fake online exchangers offering conversion of cryptocurrencies. According to a press release issued by the National Police, a number of sites have been used to deceive and cheat innocent citizens who wanted to trade their cryptos.
“The criminal group consisted of four people possessing specialized knowledge and skills in programming,”
the NPU’s press service said
The victims were requested to transfer their money to digital wallets registered with forged KYC documents under false names of foreign citizens. After receiving funds through a particular platform, the scammers would close it and open a new one, law enforcement officials explained.
So far, Ukrainian police have found at least six fake websites: moneycraft.info, swapex.net, myexchanger.lv, iconvex.net, likechange.biz, and wowex.online. Most have been taken down already, with one now redirecting to sites with pornographic content.
Officers have already conducted authorized searches at the addresses of the suspects. They have seized computer equipment, including flash drives, as well as bank cards and mobile phones that were used by the scammers. The Cyberpolice unit is currently studying the identified websites to determine the size of the fraud.
Ukraine: Top crypto trading destination
In the last few, Ukraine has experienced growing interest in cryptocurrencies with a rising trend in crypto trading volume and investor base. According to various reports published, the estimated daily crypto-hryvnia turnover on the three major Ukrainian exchanges, Exmo, Kuna and BTC Trade UA has reached $1.9 – $2 million USD (~$700 million, yearly). The total is likely to be even higher, as at least eighteen other trading platforms and more than 4,000 individual traders are believed to provide exchange services, both online and offline.
A recently conducted survey found that 72 percent of Internet-savvy Ukrainians know what cryptocurrency is and another 23 percent have heard about it. At least 13 percent of those using the world wide web possess digital coins, the poll confirmed. A number of Ukrainian officials have declared owning digital assets on their tax returns.
With rising number and interests, a lot of organizations have asked the government to bring in regulations as it would help in curbing a lot of these fraudulent activities. Its now left for the government to decide.
Do you think having strict regulations can be effective in banning fraudulent platforms and support legitimate exchanges? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.