Ukraine’s Security Service (SBU) and National Police shut down a Kyiv-based network of several dozen people who allegedly used fake cryptocurrency investment platforms and malicious code to steal digital assets from citizens of EU countries, the SBU said on 1 September.

Investigators identified the alleged organizer as a 25-year-old Kyiv IT specialist, according to the SBU. The case reaches beyond Ukraine because the agency says the alleged victims were EU citizens. The agency said the network’s monthly turnover from funds obtained illegally could reach $1 million during its most lucrative periods.

The SBU said investigators had documented alleged crimes by every member of the group. However, its statement did not specify how long the network had operated, how many EU citizens were affected, which countries they lived in, or the total amount allegedly stolen.

The agency did not name any foreign law enforcement partners involved.

How the crypto ring operated

The alleged organizer of the crypto ring recruited other tech workers in the capital, the SBU said. Posing as cryptocurrency-platform representatives, they offered targets seemingly profitable ways to invest in digital assets.

The network found victims by posting about supposedly lucrative crypto projects in popular Telegram channels, then showed them fabricated trading results and fake profits to make the operation look legitimate, investigators said.

Engaged targets were sent a link to a counterfeit site that mimicked a real crypto service and were persuaded to connect their wallets and approve a transaction, the SBU said. The site carried malicious code called a “drainer” that, the agency said, let the operators withdraw the victims’ assets to addresses they controlled—emptying the wallets.

During 23 searches of the suspects’ offices and homes, officers seized phones, computers, money believed to be criminal proceeds, and 16 high-end cars, including Porsche, BMW, and Mercedes-Benz models, the SBU said.

Authorities were still deciding whether to serve notices of suspicion, while the investigation continued under the Prosecutor General’s Office, the SBU said. Those involved could face up to 12 years in prison with confiscation of property.

Ukraine’s role in combating cross-border cybercrime

Ukraine has previously joined with foreign agencies to pursue cross-border cyber threats. In April, the SBU said it worked with the FBI, EU law enforcement, and Polish counterintelligence to disrupt Russian military-intelligence spying through hacked routers. The operation blocked more than 100 servers and removed hundreds of routers in Ukraine from Russian control.

A shootout involving Ukrainian security personnel in Kyiv left several people wounded on 2 September, with Ukrainian authorities now saying the confrontation occurred during an investigation into an alleged Russian plot to assassinate a Russian opposition figure in Ukraine.

The incident took place overnight in Kyiv’s Dniprovskyi district, amid reports that Stepan Kaplunov, deputy commander for combat operations of the Russian Volunteer Corps (RDK), had been abducted.

Shootout follows reported abduction

Ukrainska Pravda reported, citing Kaplunov’s lawyer Taras Borovskyi, that law enforcement officers arrived at the serviceman’s home after his reported disappearance.

According to Borovskyi, Kaplunov’s fellow soldiers came to the location after being alerted, after which gunfire broke out. The lawyer also published video from the scene, Ukrainska Pravda reported.

The RDK had previously said that unknown individuals abducted Kaplunov from the courtyard of his home.

Ukraine’s State Bureau of Investigation confirmed to Ukrainska Pravda that it had received a complaint from Kaplunov’s lawyers alleging his abduction and was examining it for possible registration as a criminal proceeding.

Ukrainska Pravda, citing sources in Ukraine’s security services, reported that the confrontation involved the Security Service of Ukraine (SBU) and Ukraine’s Main Intelligence Directorate (HUR). Its sources said three HUR personnel had been wounded as of Wednesday morning.

SBU links confrontation to Russian plot

The SBU later said the confrontation occurred during an investigation into an alleged terrorist attack organized by Russia’s Federal Security Service (FSB).

The agency said its investigators were conducting a search at one of the addresses connected to the case when a group of people launched an armed attack on them. The group allegedly blocked the investigators’ vehicles with cars and attempted to prevent the search.

The SBU said its Alpha special operations unit was deployed to stop the armed resistance. Officers used their weapons, and several people who resisted were wounded, according to the agency.

The attackers were detained, the SBU said. Initial investigative work found that they belonged to one of Ukraine’s Defense Forces units, while weapons and documents were seized from them.

The agency did not identify the detainees or their military unit.

Alleged assassination attempt

Earlier on 2 September, the SBU said it and HUR had jointly foiled an FSB plot to assassinate a leader of a Russian opposition nationalist political movement who had traveled to Ukraine for Independence Day.

The SBU did not name the alleged target or provide details of the planned attack.

RBC-Ukraine, citing sources, reported that the target was Kaplunov. The outlet also reported that HUR later deleted a statement about the foiled attack.

The SBU’s later statement about the shootout did not name Kaplunov or explicitly identify the armed group involved as HUR personnel.

The Russian Volunteer Corps is a unit operating within Ukraine’s military intelligence structures and composed of Russian nationals fighting against Russia’s invasion.

Budanov calls for investigation

Kyrylo Budanov, head of Ukraine’s Presidential Office, said the incident should be thoroughly and impartially investigated, according to RBC-Ukraine.

He said no one should be allowed to abduct servicemen, open fire in Ukrainian cities, or give or carry out criminal orders with impunity.

The Prosecutor General’s Office has opened a pretrial investigation into threats against and an attempt on the life of a law enforcement officer, the SBU said.

Authorities have not publicly provided a full account reconciling the different reports surrounding the incident. Investigative actions are ongoing.

Ukraine and Russian opposition figures

Ukraine has become a base for some Russian opposition figures and anti-Kremlin activists since the start of Russia’s full-scale invasion. Some have joined Ukrainian military units or otherwise supported Ukraine’s war effort.

That has also made some of them targets for Russian intelligence operations.