Crypto Pyramid Busted in Russia, Losses Exceed $10 Million
Russian law enforcement agencies have gone after the organizers of a large crypto pyramid which has been promising extraordinarily high returns. The Ponzi scheme is being unraveled after a similar project defrauded thousands of investors in Russia, the region, and far beyond. Police Find Crypto Pyramid Organizers in Dagestan, Russia Officers from the Federal Security Service (FSB) and the Ministry of Internal Affairs in the Russian republic of Dagestan have identified persons suspected of organizing a major financial pyramid offering victims profits of up to 500% per year on their....
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The Central Bank of Russia (CBR) has identified 146 financial pyramid schemes in only six months this year. Fraudsters often lure people with weak financial literacy into investment scams linked to cryptocurrencies or crypto mining operations. Pyramid Schemes Thrive Amid Rising Investment Demand, Bank of Russia Says The number of financial pyramid scams uncovered by the CBR between January and June 2021 is 1.5 times higher compared to the same time period last year, the regulator announced this week. The financial authority attributed the spike to increased activity of “unfair....
Investors defrauded by the Russia-based cryptocurrency Ponzi scheme Finiko have sent the crypto pyramid an average exceeding 720,000 rubles, or more than $10,000 at current exchange rates. The assessment comes from a survey of victims conducted by a public non-profit organization. Fifth of Finiko Investors Parted With Over 1 Million Rubles Russia is still trying to grasp the magnitude of its largest financial scam since the notorious MMM pyramid in the 1990s. While the officially registered losses to Finiko have reached 1 billion rubles (close to $14 million), some estimates suggest the....
Russian law enforcement authorities have detained six more members and executives of the notorious crypto Ponzi scheme Finiko. Police in the Republic of Tatarstan and Russia proper have conducted dozens of searches as part of an ongoing investigation into the pyramid, which defrauded investors around the world. New Arrests in Finiko Case Made in Russian Federation The Russian Ministry of Internal Affairs, with the help of the National Guard of the Russian Federation, has taken into custody six participants and leaders of Finiko, Russia’s largest financial pyramid in recent decades.....
For the past year, Kenyans have been lured with the promise of making money quickly through a pyramid scheme started by convicted Russian fraudster, Sergey Mavrodi, reports the Daily Nation, a Kenyan news site. Mavrodi is reported to have designed a major pyramid scheme in Russia before its end came in 1997, which is believed to have conned an estimated $100 million out of its members. He was later sentenced to four and a half years in prison in 2007 for defrauding 10,000 investors of around $4.3 million. This is the same man who set up MMM Global giving promises to Kenyans interested in....
The Bank of Russia has expressed concerns over the increasing number of local investors pouring their money into Bitcoin. The Russian central bank has once again reiterated its negative stance on Bitcoin (BTC), with one of the bank’s top executives comparing the cryptocurrency with a pyramid scheme.Sergey Shvetsov, the first deputy governor at the Bank of Russia, expressed the authority’s concerns over cryptocurrency investment in a Wednesday interview, warning about the perceived risk of losses by investors.Shvetsov said that local investors have been increasingly pouring their money into....