$294K Lost in Fraudulent Crypto Trading Scheme Involving Gambling
Fraudulent Crypto Trader Loses Over $290,000
A 30-year-old man from Belarus, who portrayed himself as a cryptocurrency specialist, is accused of misappropriating investor funds for gambling activities. Authorities estimate that he squandered more than one million Belarusian rubles, roughly $293,387, using the money entrusted to him by victims.
Methods of Deception and Victim Outreach
This individual reportedly operated through Telegram, claiming expertise in cryptocurrency investments to attract clients. An ongoing investigation has resulted in formal charges of large-scale fraud against him, as authorities continue to track down additional victims.
Emerging Victims Speak Out
Ten affected investors have so far come forward sharing their experiences. The initial victim was a 37-year-old woman whom the trader met online in early 2024. Although initial transactions appeared trustworthy, the entire scheme ultimately unraveled, revealing it as a scam.
The Deceptive Cycle of Investment and Gambling
After losing the initial funds, the fraudster persuaded the woman to reinvest with the promise of recovering her losses. Unbeknownst to her, these new investments were used to fuel his gambling debts. To cover mounting losses, he approached other potential investors, repeating his false promises.
Expanding the Scam
His next target was a 26-year-old man convinced under the same pretense: funds would be invested in cryptocurrency with returns paid alongside the principal. Following police questioning, the accused admitted that he relied on gambling winnings as a desperate attempt to repay the investors.
Scope of the Fraud
Authorities have identified at least ten individuals victimized by this repeated pattern of fraud. The scheme involved convincing investors to hand over money for crypto investments that were instead gambled away or used to settle previous debts, perpetuating the cycle by recruiting new victims.
Personal Measures to Repay Debts
In a bid to alleviate some of the financial pressure, the man also involved his girlfriend, who took out a car loan to help repay part of the money owed to victims. However, investigators reported that throughout the entire operation, only one investment yielded any positive return.
