Russian authorities are continuing their investigation into a cryptocurrency-based Ponzi scam that may have defrauded investors of up to $95 million.
In July, about 100 investors filed police reports against the financial company Finiko. These declarations verified financial losses in the millions of rubles. However, further sources indicated that the figure may reach 7 billion rubles. Equivalent to about $95 million at the time of publication.
Police are now on the lookout for three of Finiko’s co-founders who have escaped. Zygmunt Zygmuntovich’s whereabouts, as well as those of Edward and Marat Sabirov, are presently unknown. On August 11, Russian authorities placed the guys on a wanted list.
Meanwhile, on July 30, the authorities arrested their other co-founder, Kirill Doronin. According to reports, he was charged with fraud “on a very big scale,” in violation of part 4 of article 159 of the Russian Federation’s Criminal Code. Doronin acquired Turkish citizenship previous to his detention, the court heard, allegedly on the pretense of starting a trade business in Turkey.
Doronin’s detention was requested by the inquiry and prosecution until the end of September. Meanwhile, the defense sought home arrest as a possible option, citing Doronin’s wife’s pregnancy and impending delivery. Finiko’s lawsuit was initiated in December 2020. Additionally, the Bank of Russia designated the company as a Ponzi scam in early July.
Russia takes action against cryptocurrency-related criminality
According to recent reports, a Russian financial watchdog organization has started developing a new bitcoin monitoring tool. A tool designed to assist the country’s law enforcement in combating cryptocurrency-related criminality. It will specifically target cryptocurrency wallets suspected of being associated with criminal activities or terrorist funding. Additionally, the program will monitor the cryptocurrency market in order to identify individuals who may have participated in illegal activities.
Rosfinmonitoring, the financial watchdog in question, paid a contractor $200,000 to develop the surveillance program. RCO, a large information technology firm, eventually got the contract. They will be in charge of “Implementation of work on the development of a module for monitoring and evaluating cryptocurrency transactions using bitcoin.”
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