This article briefly:

Ukrainian authorities have uncovered a crypto pyramid scheme that has cost investors millions of dollars.

· Most of the ten arrested were citizens of the Russian Federation.

· After the February 2022 Russian-Ukrainian war, the organizers tried to conceal their involvement.

Ukrainian law enforcement has uncovered a Russia-based crypto pyramid scheme that allegedly raked in millions of dollars in profits.

The Ukrainian Security Service has uncovered a massive pyramid scheme disguised as an investment project called "Life is Good." The perpetrators reportedly offered victims the opportunity to become investors, thereby quickly increasing their capital investments.

Pyramid schemes rely on attracting new investors to pay off earlier investors, with fraudsters often promising high returns with little risk. They are fundamentally unsustainable and often result in huge losses for victims.

According to authorities, the perpetrators defrauded more than 1,000 victims, netting nearly $40 million, which was then transferred to the organizers’ crypto wallets and bank accounts. To use the service, the fraudsters developed their own online resources using the accounts of potential “investors.”

These fraudulent deals promise investors profits in the form of dividends by investing in stocks of promising world-class businesses. In addition, the fraudsters “guarantee” their clients “bonuses” to attract new customers.

Russia-based programs

Prior to 2017, the scheme operated out of the Russian Federation. But they eventually opened an office in the Ukrainian capital of Kyiv and paid for a massive advertising campaign. Kyiv police have reportedly arrested 10 people in connection with the fraud, with most of those charged being citizens of the Russian Federation.

The pyramid scheme sought to conceal its involvement after Russian forces invaded Ukraine in February 2022, likely due to increased scrutiny of Russian businesses in the country.

Authorities reportedly found computers, mobile phones, financial documents and draft records at the Kiev office and several residential addresses. They all contained evidence of illegal activity, and security services also found souvenirs and advertising products used to attract "investors."

According to Ukrainian media reports, the investigation is ongoing.