The Security Service of Ukraine (SBU) has closed down a number
of “underground” crypto exchangers in Kyiv. Officials say the platforms
have been making a million dollars in monthly turnover and allegedly
sending money to digital wallets operated by Russian payment providers.
Law Enforcement Busts Cryptocurrency Exchangers in Ukraine
Officers from Ukraine’s main law enforcement agency, SBU, have
blocked a network of underground cryptocurrency exchangers operating out
of the capital city, Kyiv. According to an announcement, the online platforms have been processing up to 30 million Ukrainian hryvnia (over $1 million) a month this year.
The exchangers allowed anonymous payments and withdrawals. Their
services were mostly used by private individuals who often received
funds to their electronic wallets issued by Russia-based payment service
providers such as Yandex.Money, Qiwi, and Webmoney which are banned in
Ukraine.
Part of the cash, the SBU claims, has been used to finance
provocations on the eve of the Independence Day of Ukraine, Aug. 24. The
security service believes the organizers received funding through these
exchangers to pay participants in the protests. The agency detailed:
The network has been operating since the beginning of 2021. During this time, it “served” more than 1,000 “clients.”
Five raids have been conducted on addresses in the Pechersky,
Shevchenkivsky, and Solomyansky districts of Kyiv, during which SBU
agents have seized computers and server hardware, cellphones and mobile
terminals preventing geolocation, documents of fictitious entities
registered in Ukraine, and foreign cash equivalent to 1 million hryvnia
(around $37,000).
The websites’ operators charged a commission of between 5 and 10% on
the transferred amounts, the Security Service of Ukraine added. The
investigation continues to establish any illegal conduct related to the
activities of the network and the persons involved, including documents,
funds, and equipment as well as money laundering.
The SBU has been targeting illegal activities related to
cryptocurrencies this year and has also made some mistakes during the
crackdown. In April, it exposed a group allegedly engaged in the
legalization of illicit funds and their illegal transfer, Forklog noted
in its report.
Nikita Knysh, the CEO of Hackcontrol, said the case was about a
cryptocurrency offline exchanger owned by partners of his in a different
business, and called the accusations of fraud and money laundering
unfounded.
In July, the security service announced it had uncovered
Ukraine’s “largest illegal crypto farm” to date and confiscated around
5,000 units of hardware, including 3,800 gaming consoles and 500 video
cards, from a warehouse in Vinnytsia. It was later revealed that the facility was a data center operated legally by an IT company. Ukrainian media speculated the Playstation 4 Slims from the photos released by the SBU had likely been used for gaming applications.
source link : https://news.bitcoin.com/ukraine-shuts-down-crypto-exchangers-sending-money-to-russian-wallets/
