Crypto Pyramid Busted in Russia
Organizers of a large crypto pyramid promising massive returns has attracted the attention of Russian law enforcement agencies. The authorities are unraveling the Ponzi scheme after thousands of Russians had been defrauded by a similar project in Russia as well as other regions. Officers of the Ministry of Internal Affairs and the Federal Security Service (FSB) in the republic of Dagestan in Russia have identified individuals who were suspected of organizing a massive financial pyramid that claims to offer victims profits of about 500% in a year on their digital asset investments. According to media reports, the suspects have been connected to the Yusra Global Project.
The fraudulent organization does not just offices in the republic of Dagestan, but has also established itself in some other regions in the country, along with Turkey and Kazakhstan in Central Asia. The publication disclosed that four individuals had been detained back in the month of January and all of them were actually Russian citizens. It is believed that these people were behind the Ponzi scheme. Initially, the four people had been placed under arrest for a period of four months. The defendants may have to pay hefty fines and could be sentenced for as long as ten years.
The perpetrators involved in the fraud had inflated their quotes of the values of digital assets and made use of the funds that were invested by new participants of the Ponzi scheme for paying out dividends. The report further indicated that the remaining funds had been distributed by the perpetrators amongst themselves and had used it for buying real estate. As per preliminary estimates, the total losses incurred in the pyramid scheme are close to 1 billion rubles. This would bring them close to about $10 million. This news regarding the investigation into the operations of Yusra Global came after the largest financial scam in Russia was busted by the country’s authorities last year.
This was after the notorious MMM pyramid that had occurred in the 1990s. Another Ponzi scheme by the name of Finikohad exploited the popularity of cryptocurrencies. This particular scheme had led to losses of around $4 billion. Kirill Doronin founded this particular Ponzi scheme and the social media influencer had already been associated with some other scams in the past as well. This resulted in arrests of some of his accomplices. The phantom entity was able to attract the citizens of both Russia and Ukraine, along with other countries that were part of the former-Soviet space.
People in the United States and some member states of the European Union had also made investments. About 800,000 separate deposits had been made by these people in the form of cryptocurrencies. The pyramid scheme had been based in the Russian region of Tatarstan and it managed to receive bitcoin with an approximate value of more than $15 billion within two years. This news of yet another Ponzi scheme comes while Russia is trying to develop laws for regulating cryptocurrencies in the country, even though the CBR is opposed to the idea.