The Office of the Prosecutor General and detectives from the Economic Security Bureau of Ukraine have uncovered the activities of a criminal organisation which, according to investigators, helped businesses convert cashless funds into cash through shell companies and cryptocurrency.
This was reported by the Office of the Prosecutor General.
According to the investigation, the “conversion centre” operated from August 2023 to September 2026. The criminal organisation included more than 30 people, with responsibilities divided among them — from finding nominee directors and keeping accounts to managing crypto wallets and delivering cash to clients.
Each month, around UAH 500 million passed through the scheme. The total volume of financial transactions amounted to UAH 23.5 billion.
Participants, according to investigators, found people in difficult financial circumstances and registered companies and sole proprietorships in their names that in fact did not conduct any business activity.
Funds from real businesses were transferred into the accounts of such companies supposedly for goods or services. According to the investigation, this made it possible to create an unjustified VAT credit and evade taxes.
The cashless funds were then converted into the Tether (USDT) cryptocurrency and transferred to specially created crypto wallets.
Through a network of online and offline exchange points, the cryptocurrency was exchanged for cash. Couriers then delivered the money to clients.
For their services, those involved in the scheme received between 1.5% and 3.5% of the conversion amount.
For concealment, according to law enforcement, they used VPN services, foreign SIM cards and more than 30 closed Telegram groups.
On 18 September, ESB detectives carried out 50 searches at the homes of members of the organisation and in offices.
Law enforcement seized:
- UAH 35,569,750;
- USD 1,425,878;
- EUR 647,445;
- 43 pieces of computer equipment and 11 mobile phones;
- 28 seals of shell companies;
- accounting documents relating to more than 30 shell companies.
Six members of the criminal organisation were served with notices of suspicion on counts of participation in a criminal organisation, illegal actions involving transfer documents, forgery of documents for the state registration of legal entities and sole proprietorships, and laundering of property obtained by criminal means.
The offences are those provided for under Part 2 of Article 255, Part 2 of Article 200, Parts 1 and 2 of Article 205-1, and Part 3 of Article 209 of the Criminal Code of Ukraine.
The pre-trial investigation is ongoing.
In accordance with Article 62 of the Constitution of Ukraine, a person is considered innocent until their guilt is proven by a court’s conviction.