Building Trust via Fake Balances: Ukrainian Police Bust Network Draining Crypto Wallets
Ukrainian police have dismantled a network that gained trust through fake balances and drained users’ crypto wallets during the withdrawal phase.
Users who accessed fake investment sites mistook the rising balances on their screens for real profits. However, according to statements from the Ukrainian police and the Security Service of Ukraine (SBU), those wishing to withdraw funds were asked to link their main wallets to the platforms. A seemingly minor transaction was then approved, and the assets were transferred to addresses under the operators’ control.
So far, 62 victims have been identified in the investigation. The network reportedly targeted individuals in more than 20 countries, including Germany, Poland, Lithuania, Latvia, Spain, France, the United Kingdom, Canada, and Israel.
Fake balances masked the wallet-draining attack
According to the police, the fake balances on the platforms appeared to rise through transactions manually created by the operators. This method led users to believe their investments were growing.
Malware was triggered on sites requesting wallet access during the withdrawal process. The small test transaction approved by the user allowed crypto assets to be moved to wallets controlled by the operators. Following the transfer, victims were unable to access their accounts on the platform.
It was noted that the scammers collected passport information, phone numbers, email addresses, login credentials, passwords, and photos during registration and identity verification. Consequently, the network targeted personal data in addition to crypto assets.
Teams in Ukraine conducted 34 searches in and around Kyiv. The operation resulted in the seizure of more than 100 computers, over 100 phones, 79 SIM cards, documents, cash, and 15 vehicles. The SBU reported that the network’s monthly turnover could reach $1 million. The investigation is ongoing to identify additional victims and determine the total loss.