Russian police officials are investigating one of the biggest alleged Ponzi schemes in the country involving cryptocurrency. One of the founders is under arrest, while others have reportedly left Russia. Victims’ losses might be up to $95 million.
The company, named Finiko, offered lucrative investment options using a network of promoters who pulled in new users for referral fees. Investors were supposed to put in bitcoin and get the native token of Finiko in return.
In July, Kirill Doronin, one of founders of Finiko, was arrested under fraud charges. Before the arrest, he obtained Turkish citizenship under a different name, Onur Namik. On Wednesday, Finiko’s other co-founders – Marat and Edward Sabirov and Zygmunt Zygmuntovich – were put on a wanted list by the Russian police.
Edward Sabirov was also a co-founder of a firm led by Nikolay Nikiforov, a former Russian minister of communications, which planned to build homes in Kazan, the city…