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๐ŸŽ“ Russian scammers arrested for stealing millions in crypto

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Russian government agencies have been hunting down regulators for a fraudulent cryptocurrency scheme that was expected to promise extraordinarily high returns. The Ponzi scheme was exposed after a similar project defrauded thousands of investors in Russia, the region and beyond.

Police find organizers of fraudulent scheme in Dagestan

Officials from the Federal Security Service (FSB) and the Ministry of Internal Affairs of the Russian Republic of Dagestan have identified people suspected of organizing a large financial pyramid that offers victims a profit of up to 500% per year on their investments in digital assets. .

According to the Russian daily Kommersant, the suspects are responsible for Yusra Global, a Russian investment company based in the Republic of Dagestan. The defendants established a main office in Dagestan, in addition to establishing other offices in various regions of Russia, Kazakhstan in Central Asia, and Turkey.

The newspaper revealed that authorities arrested four people in January, all Russian citizens, who are believed to be behind the Ponzi scheme. They were initially detained for two months. If convicted, the defendants could face up to ten years in prison in addition to heavy fines.

According to the police report, the perpetrators of the scam inflated the prices of digital assets and paid profits with the money invested by the new participants in the pyramid scheme, after which they distributed the remaining money among themselves and bought real estate with it.

Preliminary estimates put the victims’ losses at 1 billion rubles, or more than $10 million.

The news about the Yusra Global investigation comes after last year, when Russian authorities dismantled the biggest financial scam in the country since the infamous MMM scheme in the 1990s.

The Finiko scheme, which is also a Ponzi scheme exploiting the growing popularity of cryptocurrencies, is responsible for losses of up to $4 billion. Its founder, Kirill Doronin, a social media influencer linked to other scams in the past, was arrested along with several of his associates.

It is worth noting that citizens of Russia, Ukraine, other countries of the former Soviet Union, member states of the European Union, and the United States are among those who sent 800,000 separate cryptocurrency deposits to the shell institution. The foundation’s pyramid scheme, which was based in the Republic of Tatarstan, has received more than $1.5 billion in bitcoin in less than two years, according to Chainalysis.

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