Ukraine Seizes Assets From OTC Crypto Brokers

Ukraine Seizes Assets From OTC Crypto Brokers

Anna Baydakova – Investigative reporter, focusing on Eastern Europe and Russia. 

Ukrainian prosecutors said they have seized a wealth of assets belonging to over-the-counter (OTC) brokers who illegally facilitated cryptocurrency purchases for users from Russia and Russia-occupied territories.

The clients of those dealers were able “to convert cash and non-cash funds into cryptocurrency, without paying taxes,” the Prosecutor General’s office announced Tuesday in a Ukrainian-language press release that received little notice in the West.

It’s not clear when the trades happened or whether it was before or after Russia started a war in Ukraine this winter.

The authorities seized 850,000 euros, US$470,000 and 460,000 Ukrainian hryvnia (amounting to about $1.67 million in total); 830 kilograms of silver; six pieces of land; and three apartments. All were the proceeds of illegal crypto trades, the Prosecutor General’s office said. The assets, worth around $3.39 million combined, were handed over to Ukraine’s Asset Recovery and Management Agency, which is similar to the U.S. Marshals Service.

Local police are investigating fraud, money laundering and tax evasion charges against unnamed persons, prosecutors said.

Last year, Ukrainian law enforcement reported seizing similar amounts of money from crypto OTCs that allegedly served Russians and residents of the so-called Luhansk and Donetsk People’s Republic, Ukrainian territories occupied by Russian-backed paramilitary units since 2014.

On April 28, 2021, the Security Service of Ukraine (SSU) reported “blocking” the work of a group that facilitated crypto trades using Russian payment systems, which is illegal in Ukraine. The SSU reported seizing over 800 kilograms of silver and 43 million of Ukrainian hryvnias ($1.46 million), computers, phones, hard drives and “documents confirming the deals.”

The group under investigation processed over 240 million Ukrainian hryvnias ($8.12 million), 65 million ($2.2 million) of which were related to money laundering, the 2021 announcement said.

Other News & Reports

Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding Artefaktum’s ability to strengthen the security profiles of its customers and partners. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions, or results, and involve several known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside Artefaktum’s management’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include Artefaktum’s inability to recognize the anticipated benefits of collaborations with Artefaktum’s partners and customers; Artefaktum’s ability to execute its plans to develop and market new products and the timing of these development programs; the rate and degree of market acceptance of Artefaktum’s products; the success of other competing technologies that may become available; Artefaktum’s ability to identify and integrate acquisitions; the performance of Artefaktum’s products; potential litigation involving Artefaktum; and general economic and market conditions impacting demand for Artefaktum’s products. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described under the heading “Risk Factors” in Artefaktum’s registration statement declared effective by its inception date and other documents that Artefaktum has filed or will file. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Artefaktum does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.