Ex-Ukrainian police accused of extorting $2.2M from crypto

The Kyiv Regional Prosecutor’s Office says its pre-trial investigation is complete into a group that included four former police officers and a previously convicted civilian accused of targeting crypto entrepreneurs. Prosecutors allege two colonels organized the group and recruited colleagues from the Main Police Department in the Autonomous Republic of Crimea and Sevastopol and from a Kyiv-based unit. The suspects were dismissed from police service after arrest and the case materials have been forwarded to court.

Prosecutors allege the defendants tracked crypto founders, seized them at gunpoint, held them in undisclosed locations and forced them to hand over money and sign documents acknowledging debts that did not exist. In one Kyiv incident, a victim was allegedly compelled to produce a fake debt agreement for $5 million before being moved between several locations. The charges listed in the pre-trial file include creating and participating in an armed gang, kidnapping, unlawful imprisonment, robbery, extortion and illegal possession of drugs.

Investigators say the group used encrypted messengers, official vehicles, uniforms and impersonation of law enforcement to carry out the scheme, with a defined division of roles among participants. Authorities say the alleged criminal activity continued until November 2025, when the network was dismantled.

The case is part of a wider pattern of so-called “wrench attacks,” in which perpetrators use threats, force or impersonation of officials to coerce transfers of cryptocurrency. Blockchain security firm CertiK recorded 72 verified wrench-attack incidents in 2025, a 75% increase from 2024, with confirmed losses exceeding $40.9 million. Law enforcement in multiple countries have investigated related incidents, including cases in the United States and France that involved suspects posing as officers to force victims to transfer crypto and large-scale probes after violent kidnappings and home invasions.

Cybercrime consultant David Sehyeon Baek warned that cryptographic protections do not prevent losses when violence or coercion are used. He said crypto assets can be moved quickly across borders under duress, adding that personal security, jurisdictional risk and legal protections can matter as much as wallet security for entrepreneurs operating in environments with weak local protection.

The Kyiv pre-trial file now goes to court, where judges will review the evidence and consider charges. Prosecutors have not announced formal convictions; the accused remain subject to Ukraine’s judicial process.