The Ukraine Security Service has uncovered a sizable crypto pyramid scheme that went under the pretense of an investment initiative called “Life is Good.” According to reports, the perpetrators gave the victims the chance to become investors, which quickly increased their capital deposits.
To repay earlier investors, a pyramid scheme recruits new investors. Fraudsters frequently make low-risk investments with high profits. They are inherently unsustainable and frequently cause significant losses for the victims.
Authorities claim that the fraudsters conned over a thousand victims out of close to $40 million. The funds were subsequently transferred to the organizer’s bank accounts and cryptocurrency wallets. The scammers created their own web resource with the accounts of possible “investors” in order to use the service.
Investing in the shares of prospective world-class companies would yield investors riches in the form of dividends, according to the fraudulent offers. In order to draw in new customers, the scammers also “guaranteed” bonuses to their clients.
The pyramid crypto scam
Prior to 2017, the Russian Federation was the operation’s base of the scheme. Nonetheless, they ultimately opened a location in Kyiv, the capital of Ukraine, and invested heavily in advertising. Ten people are said to have been taken into custody by the Kyiv police in relation to the fraud. Russian Federation citizens make up the majority of those accused.
The pyramid scam made an effort to hide its involvement after the Russian invasion of Ukraine in February 2022. Probably as a result of the country’s increasing monitoring of Russian enterprises.
According to reports, the Kyiv office and a number of residential addresses were where the authorities reportedly discovered computers, mobile phones, financial paperwork, and draft records. There was evidence of criminal behavior in all of them. The security personnel also discovered used souvenirs and advertising items used to attract “investors.”
