Ukraine Police Say Fake Crypto Academy Defrauded 988 People of $1.11 Million

How the scheme allegedly worked

According to law enforcement, the suspects presented themselves as representatives of the so-called Ukrainian Financial Academy and advertised cryptocurrency investment courses on Facebook and Instagram. After people responded to the ads, managers reportedly gathered information about their finances and worked to build trust.

Police say the next stage involved so-called traders who convinced victims to send money to bank accounts and crypto wallets controlled by the group. Investigators allege the suspects used a fake investment platform that showed fabricated profits to make clients believe their money was generating returns.

To reinforce that impression, some victims were reportedly allowed to withdraw a small amount. Police say that once larger sums had been deposited, attempts to recover funds were blocked.

Pressure on vulnerable victims

Investigators allege the group did not act randomly, but deliberately focused on people in difficult personal or financial circumstances. The reported victims included individuals who had set aside money for medical treatment or for the purchase of a home.

Police cited one case in which a woman undergoing cancer treatment transferred around 500,000 hryvnias that had been intended for her care. Other victims, according to investigators, were persuaded to take out loans or invest family savings.

The scheme also allegedly used earlier victims to attract new ones. In one instance described by police, a client was convinced to record a favorable video testimonial about the platform, which was then used in promotional materials.

Blocked accounts and new payment demands

When victims sought to withdraw their money, investigators say they were denied access to their accounts. Police allege the suspects then demanded additional payments, claiming the funds were needed to unblock accounts, cover commissions, or replenish a reserve fund.

Law enforcement says it has identified 988 unique accounts that may belong to victims. The total losses are estimated at about $1.11 million.

Detentions and charges

The National Police Main Investigative Department, working with cyberpolice, carried out dozens of searches in the Kharkiv and Dnipropetrovsk regions. Four alleged key members of the organization were detained.

According to investigators, two co-organizers managed the operation, recruited participants, and distributed roles and proceeds. Other members were allegedly responsible for advertising and for communicating with potential victims.

The suspects were notified of suspicion under Parts 4 and 5 of Article 190 and Parts 1 and 2 of Article 255 of the Criminal Code of Ukraine, which concern fraud on an especially large scale as part of a criminal organization. A court has ordered pretrial detention for all four. If convicted, they face up to 12 years in prison with confiscation of property.

The case adds to a broader pattern of fraud schemes that use crypto-related language, social media promotion, and staged platform activity to create the appearance of legitimate investing. In this investigation, police have framed the alleged academy not as a training business but as a front for organized fraud.