In Russia, an ex-policeman deceived crypto investors out of $500,000

A traditional pyramid was disguised in Omsk as an investment crypto fund. In total, the organizers managed to collect 36 million rubles from Omsk crypto investors. (about $500,000).

It all started traditionally and quite successfully, exactly according to the traditional pyramid scheme. Talking about the profitability of the crypto market, opportunities to get rich quickly, and close cooperation with the famous consulting company DoctorBit, the scammers took money from entrepreneurs with the promise of returning everything with interest. Moreover, it was not just anyone who took it, but the son of the ex-Minister of Internal Affairs of Buryatia, retired police major Ivan Zaichenko and his partner Anton Usov. 

For the first four months, investors actually received profits weekly. The success of the investment forced them to increase the amount of the deposit and attracted new participants.

Usov convincingly spoke about the specialists of the DoctorBit center, who form an investment portfolio based on professional analysis of the crypto market, and therefore promised minimal risk and high return on investment. In addition to this, the scammers assured that they had a crisis fund, from which the damage would be compensated if necessary.

However, now investors doubt that the fund’s funds were intended for such purposes and suspect that they were used to purchase an Infiniti Jeep by the criminals, then another SUV and open a prestigious office in the city center. By April, the pyramid scammed 36 million rubles from gullible investors and stopped payments. The organizers delayed the collapse as best they could, explaining the delays in payments either by May holidays, or by the seizure of bank accounts, or by technical problems with transfers. For several months, clients tried unsuccessfully to return their deposits, obtaining only promissory notes and strong recommendations not to contact the police. 

In July, the patience of deceived investors ran out and 18 people turned to the Ministry of Internal Affairs with a statement of fraud. This is less than half of the victims; about twenty investors did not want to contact law enforcement agencies. Considering the number of participants in the pyramid, the total amount of damage could be about 48 million rubles (about $700,000).

The Omsk Department of the Ministry of Internal Affairs began an investigation into the facts stated in the statement. However, given Zaichenko’s previous place of work and rank in the law enforcement structure, the victims are not confident in the further development of events and the initiation of a criminal case.