Ukrainian police have dismantled a sophisticated cryptocurrency fraud ring that targeted Latvian citizens and arrested five individuals, including the scheme's mastermind.

The fraudulent operation was orchestrated by a 27-year-old resident of Kharkiv, who enlisted seven accomplices to participate in the scheme. The criminals allegedly contacted Latvians by phone, offering lucrative opportunities to invest in cryptocurrency or stocks with the promise of substantial returns. If the victims expressed interest, they were directed to a link that granted the fraudsters remote access to their computers. The perpetrators then installed a so-called “personal account” on the victims' devices, linked to a fraudulent trading platform.

When victims attempted to withdraw their funds along with the supposed accrued interest, the scammers employed various stalling tactics. They claimed that stock prices were about to rise or that additional funds were needed to complete transactions. In reality, the victims' money was being funneled into cryptocurrency wallets controlled by the criminal organization, which was then laundered through exchange offices under their control.

Following an intensive investigation, the police conducted 20 raids across various locations in Kharkiv linked to the group's activities. During the raids, police seized documents, equipment containing contacts and correspondence with potential victims, Latvian SIM cards, a grenade, approximately $160,000 in cash, 250,000 UAH, and five luxury vehicles.

The arrested individuals have been formally charged with fraud on an especially large scale as part of a criminal organization (Part 5 of Article 190 of the Criminal Code of Ukraine), as well as the creation and participation in a criminal organization (Part 1 and Part 2 of Article 255 of the Criminal Code of Ukraine). All suspects have been remanded in custody without bail.

The pre-trial investigation is ongoing, with authorities working to identify and apprehend the remaining three participants involved in the scheme.

Also, Ukraine's Cyber Police announced it completed a pre-trial investigation pertaining a prolific affiliate of a ransomware syndicate responsible for a series of high-profile ransomware attacks against organizations in 71 countries using LockerGoga, MegaCortex, HIVE and Dharma ransomware. The man was arrested in November last year. He faces up to 12 years in prison.

In a separate operation, Ukrainian police arrested three people linked to a cybercrime group that hijacked Instagram accounts. The hackers used brute force to compromise the victims’ accounts and then sold the login data on dark web forums. If convicted, the criminals may face up to 15 years behind bars.