Sweden Demands Action Against Ukraine Crypto Fraud Scheme


Sweden has urged Ukraine to take action against the alleged crypto fraud scheme. Scammers are targeting inexperienced vulnerable investors in Sweden, Australia, New Zealand and the United Kingdom.

05 March, 2020 | AtoZ Markets – The Swedish national newspaper Dagens Nyheter (DN) revealed crypto fraud scheme “fraud factory”, operating from Kyiev, the capital of Ukraine. The Milton group, based in Ukraine, allegedly defrauded investors by offering them false Bitcoin (BTC) investment schemes. However, the scam would have raised more than $ 70 million. Several older people have been reported to have been deceived and lost their savings.

Sweden Calls for Action on Ukraine BTC Scam

The Swedish Minister of Foreign Affairs, Ann Linde, spoke at a meeting with senior Ukrainian officials. She expressed her anger at the widespread fraud, mainly since it targeted the elderly. She said:

It is truly overwhelming to see how they are bluffing Swedish pensioners who have to leave their house and live on minimum subsistence level. And then they sit there, laughing.

The most important thing is that [the allegations] attract attention. I do not know if this information exists in Ukrainian. Otherwise, it is up to the DN to ensure it.

The Swedish Minister for Digitization and Energy urged the government to crack down on tech companies for their role in these scams. Minister Anders Ygeman has revealed that his office is in the process of formulating legislation that will empower law enforcement to prosecute the big tech giants.

Read More: Bitcoin Hashrate Records 150 Quintillion After BTC Surged Higher

Facebook Allowed Milton Group’s Ads

All the victims claimed to have been targeted after having clicked on advertisements on BTC programs to get rich quickly on Facebook. However, the minister believes that Facebook should take responsibility for these activities and its failure to stop them. He also said:

“Facebook earns 1.5 billion SEK (160 million dollars) each year in Sweden from advertising. They must be able to guarantee that they do not have fraudulent advertisements that force retirees to leave. If they were trying as hard to protect themselves from fake ads as it was to allow ads to go to a specific group, that wouldn’t exist. “

Telemarketers cold-calling potential investors expected to make 300 calls a day. They advised to present different identities so that they could “extract” more money from customers. They also pretended to be lawyers and financial advisers who promised to return the money to the victim after a free investment. However, the group received $ 1,000 each month from certain people. An elderly citizen said s/he lost $ 200,000.

According to the DN, different commissions corresponded to different payment methods. Credit card transfers and services like Moneygram, for example, received 4% and 6% respectively. And transfers with cryptocurrency received a 9% commission.

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