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Feb. 28, 2025, 12:53 p.m.

Odesa Pyramid Scheme Defrauds Deposit Holders of Over $200,000

Photo: Odesa Regional Prosecutor's Office

(Photo: Odesa Regional Prosecutor's Office)

A pyramid scheme was organized in Odesa and defrauded depositors of more than USD 200,000.

According to the regional prosecutor's office, law enforcement officers detained three people - the organizer of the fraudulent scheme and his two accomplices. They have already been notified of being suspected under Part 5 of Article 190 of the Criminal Code of Ukraine (fraud on a large scale).

According to the investigation, the criminals set up a company posing as an investment firm, although it did not have any licenses or permits. To create the illusion of reliability, the organizer listed 92 different types of economic activity in the company's registration, ranging from financial services to other industries.

Photo: Odesa Regional Prosecutor's Office

Initially, depositors were paid small amounts, creating the impression of stability and benefits. This encouraged people to deposit even more money and attract new members. However, later the payments stopped and the founders of the scheme disappeared.

All the funds received were immediately converted into cryptocurrency and withdrawn through offshore accounts. At least 7 victims have already been identified, including members of the Armed Forces of Ukraine. The total number of people defrauded may exceed 200.

During the searches, law enforcement officers seized computers, mobile phones, draft records and cash confirming the illegal activity.

The prosecutor's office has now filed a motion with the court to take the suspects into custody. The investigation is ongoing.

Earlier, police detained a resident of Odesa suspected of fraud. The man promised housing for the defenders and their families. His actions affected 32 people.

Law enforcement officers also detained three suspects of participating in a criminal group that deceived citizens by posing as bank employees and misappropriating funds.

Ірина Глухова

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