Cryptocurrency Worth $1.5M Seized From Former Ukrainian Head of State Communications

The seizure was supported by the Supreme Anti-Corruption Court in Ukraine.

AccessTimeIconDec 1, 2023 at 5:05 p.m. UTC
Updated Jan 26, 2024 at 3:25 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The National Anti-Corruption Bureau of Ukraine (NABU) has seized $1.5 million worth of cryptocurrency from Yuriy Shchigol, Ukraine's former head of the State Special Communications Service, according to local news outlet RBC.

The seizure, which involved $1.2 million worth of tether (USDT) and 6.9 bitcoin (BTC), was supported by the Supreme Anti-Corruption Court in Ukraine.

Schigol and his deputy, Viktor Zhor, allegedly siphoned state money allocated to purchasing equipment and software before converting the proceeds to cryptocurrency.

The scheme was facilitated by several companies that attempted to keep the crypto conversions a secret.

Shchigol has reportedly been taken into custody as a preventative measure, law enforcement said.

In 2020, Ukrainian police arrested a hacker accused of selling personal data, including crypto wallet information. Two years before that, police swooped in and arrested four Ukrainian citizens for operating a fraudulent crypto exchange.

Edited by Aoyon Ashraf.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Oliver Knight

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about