Ukraine Authorities Take Down $40 Million Russian Crypto Scam

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  • Ukrainian authorities have taken down a Russian pyramid scheme that took $40 million from over 1,000 investors
  • Life Is Good was a fake investment platform that had a Kyiv branch
  • The branch was raided by Ukraine Secret Service agents and the scheme was smashed

Law enforcement authorities in Ukraine have uncovered a financial pyramid scheme believed to have originated in Russia that is suspected of netting millions of dollars for its orchestrators. The investment scam, called ‘Life Is Good’, allegedly lured victims into sending fiat currency and cryptocurrency by promising lucrative returns from investments in major global corporations. It is believed that $40 million was taken from over 1,000 investors before the scam was rumbled.

Life Is Good, Just Not for Victims

Ukraine’s Security Service (SBU) announced yesterday that it had dismantled ‘Life Is Good’, a large-scale pyramid scheme that instructed victims to transfer their money directly to the scammers’ crypto wallets and bank accounts. The scheme maintained an online platform with fake investor accounts, offering customers promises of stable dividends and “guaranteed” bonuses if they recruited new participants.

Ukrainian investigators have determined that over 10 individuals, mostly Russian nationals, were involved in the criminal organization responsible for operating Life is Good, which first launched in Russia in 2017 and also had a local branch in Ukraine. In an effort to hide their involvement, the organizers developed a mechanism to collect cryptocurrencies via a network of exchanges operating throughout Ukraine, following Russia’s full-scale invasion in late February 2022.

With the assistance of their colleagues in the Ukrainian police and prosecutors, SBU officers raided the offices of Life Is Good in Kyiv, seizing computers, mobile phones, accounting documents, advertising materials, and other records indicating criminal activity.