Obtaining funds under the guise of cryptocurrency investments: a lawyer’s perspective

Cryptocurrency investments have become one of the most common tools used by fraudsters in Ukraine. Over the past year alone, law-enforcement authorities have exposed dozens of criminal organisations that allegedly obtained funds from citizens ranging from millions to tens of millions of hryvnias. This article examines the legal aspects of such offences, common fraud schemes and defence strategies.

Why it matters: major cases in 2025–2026

Examples include:

• October 2025, Odesa: a transnational network involving fictitious investments allegedly transferred investors’ funds to crypto wallets and spent them. The suspects face up to 12 years’ imprisonment.
• November 2025: pseudo-trading platforms allegedly misappropriated funds from EU citizens; more than USD 1.4 million in cash was seized.
• July 2026: a criminal organisation allegedly defrauded nearly one thousand Ukrainians of more than USD 1.1 million under the guise of cryptocurrency-investment training.
• August 2026: law-enforcement authorities shut down 94 fraudulent call centres, including those operating under the guise of crypto investments.

Common fraud schemes

1. Fake investment platforms

Fraudsters create professional-looking websites that imitate legitimate trading platforms. After transferring funds, the victim sees a supposed “profit” on the screen. However, when attempting to withdraw funds, they are required to pay alleged “taxes” or “fees.” The platform later disappears.

2. High-pressure call centres

Call-centre operators contact potential victims while posing as managers of investment companies. Using pre-prepared scripts, they persuade people that there is a “unique opportunity” and help them “open an account quickly.” Funds are then transferred to crypto wallets controlled by the fraudsters.

3. Financial pyramids disguised as crypto projects

Organisers create “innovative” projects promising passive income. Early participants receive payments funded by new investors, but when the inflow of money slows, the pyramid collapses.

Legal status of cryptocurrency

In Ukraine, cryptocurrency is recognised as a virtual asset and an object of civil rights. This means that crypto assets can be the subject of an offence, and their value for calculating damages is determined in hryvnia equivalent at the time the offence was committed.

Defence strategies

1. Distinguishing participants’ roles

It is critically important to establish the specific role played by each suspect. Organisers face more severe liability than ordinary participants.

2. Reviewing the legality of searches

Searches and the seizure of devices must be conducted in accordance with procedural requirements. Violations may provide grounds for evidence to be ruled inadmissible.

3. Challenging the amount of damage

Alleged losses are often overstated or unsupported by evidence. The defence may request an independent expert assessment and recalculation.

Preventive measures

In cases involving especially serious offences, courts often order pre-trial detention. The defence may propose alternatives, such as bail or house arrest.

Advice for investors: red flags

1. Guaranteed high returns without risk, such as 20% or more per month.
2. No licences or registration with financial authorities.
3. Pressure to act urgently: “the offer is valid today only.”
4. Requests to transfer funds to private crypto wallets rather than official accounts.
5. Inability to withdraw funds without making additional payments.
6. Aggressive calls from alleged “managers.”

Conclusion

Obtaining funds under the guise of cryptocurrency investments remains one of the most serious categories of criminal offences in Ukraine. The sanctions under Articles 190, 255 and 209 of the Criminal Code of Ukraine provide for up to 12 years’ imprisonment with confiscation of property.

As a lawyer, I urge anyone who has come under suspicion to seek professional legal assistance without delay. A properly chosen defence strategy at the early stages may materially affect the outcome of the case.

Nazar Al-Mziravi
Attorney at Law, specialising in criminal law and defence in fraud and organised-crime cases, WINNER Law Firm.

If you or someone close to you is in a similar situation, please seek a consultation.