Former Ukraine Official’s Crypto Assets Seized Amid Corruption Investigation
The Anti-Corruption Bureau of Ukraine (NABU) announced on Thursday that it had seized approximately $1.5 million worth of cryptocurrency from Yury Shchigol, a former chief of Ukraine’s Special Communications Service. The assets included 6.9 BTC, 1.2 million USDT, and 331 TRX.
Shchigol has been under investigation for allegedly misappropriating government funds amounting to around $1.8 million. NABU revealed that Shchigol and his deputy, Victor Zhor, were involved in a criminal scheme where the Special Communications Service secretly purchased software and services from two firms at an inflated price to avoid an open auction.
The unnamed firms colluded with Shchigol and Zhor, resulting in the government agency paying $7.8 million instead of the actual cost of $6.1 million for the goods and services. The difference was pocketed by Shchigol and Zhor.
Arrest of Co-conspirator
Zhor was arrested on Wednesday following these revelations.
It is not uncommon for Ukrainian public officials to be associated with cryptocurrencies. In 2021, several civil servants claimed to own 46,351 bitcoins valued at $2.7 billion at the time. Additionally, the 19-year-old son of two national parliament members, who is also a local politician himself, reported owning monero worth $24.6 million.
Hot Take: Former Chief of Ukraine’s Special Communications Service Involved in Crypto Corruption Scandal
In another case highlighting the intersection between cryptocurrencies and corruption, Yury Shchigol, a former chief of Ukraine’s Special Communications Service, has had his crypto assets worth $1.5 million seized by the Anti-Corruption Bureau (NABU). The investigation revealed a criminal scheme where Shchigol and his deputy colluded with two firms to overcharge the government agency for software and services, pocketing the excess funds.
This incident underscores the need for stringent regulations and transparency in the crypto space, particularly in relation to public officials. It also serves as a reminder that cryptocurrencies can be exploited by individuals seeking to engage in illicit activities. As more cases like this emerge, it becomes increasingly important for authorities to address these issues and ensure accountability within the industry.
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