TLDR
- A Kyiv court convicted three men for operating an illegal casino hidden on the ninth floor of a business centre
- The same group ran a fraudulent crypto call centre on the fourth floor of the building, promising investors 5% daily returns
- Fines totalling over UAH 2.3 million were imposed and more than $20,000 was confiscated by the state
- The call centre investigation has been handed over to Ukraine’s National Police for further examination
- Ukraine continues cracking down on underground gambling and financial scams since partially legalising gambling in 2020
A Kyiv city court has convicted three men for running an illegal casino inside a multi-storey business centre while simultaneously operating a fraudulent cryptocurrency investment call centre in the same building.
The underground casino was set up on the ninth floor of a commercial office building in Kyiv. A call centre used to solicit clients and process payments operated from the fourth floor.
The investigation was carried out by detectives from the Territorial Directorate of the State Bureau of Economic Security, known as BEB, back in 2024. The accused included a Kyiv resident and two accomplices.
How the Crypto Fraud Worked
Call centre employees contacted potential victims and promoted investments in what they described as an automated cryptocurrency trading system. They told investors the system could generate returns of up to 5% per day.
Once victims transferred their money, the fraudsters cut off all communication. No legitimate trading system existed behind the promises.
The defendants were charged under the Criminal Code of Ukraine for illegal organisation and running gambling activities as an organised group. The charges fell under part 3 of Article 28 and part 2 of Article 203-2.
The court fined the alleged organiser UAH 799,000, which is roughly $18,191. Each of the two accomplices received fines of UAH 765,000.
On top of the fines, the state confiscated more than $20,000. The total financial penalties across all three defendants exceeded UAH 2.3 million.
The criminal investigation into the call centre’s fraudulent activities has now been transferred to the National Police for continued examination. The Kyiv City Prosecutor’s Office has maintained procedural supervision throughout the legal process.
Ukraine’s Growing Crackdown on Illegal Gambling
This case highlights the ongoing challenges Ukraine faces in dealing with hidden illegal gambling and financial scams. Since the country partially legalised gambling in 2020, authorities have stepped up efforts to shut down underground casinos.
These unlicensed operations are often found running out of leased commercial properties. The business centre setup in this case was a typical example of how operators try to hide illegal activity behind a legitimate front.
Ukraine has also been tightening regulations around illegal gambling advertising and access. In March, the country’s Ministries of Digital Transformation and Defence announced an automated system designed to block military personnel from accessing online gambling platforms.
The country already has a ban on service members using online casinos during martial law. The new system aims to enforce that ban more effectively.
Ukraine’s gaming regulator, PlayCity, has also introduced a new online complaints tool. The system is designed to make it easier for the public to report illegal gambling advertising.
The combination of illegal gambling and crypto fraud in one location made this case stand out for investigators. It showed how criminal groups can layer different types of financial crime within a single operation.
The fines and confiscation orders represent the court’s final ruling on the gambling charges, while the crypto fraud investigation continues under the National Police.
