The Swedish authorities is reacting to an declared Bitcoin fraud scheme that targeted vulnerable people in Sweden, Commonwealth of australia, New Zealand and the U.M.

Ukrainian officials were informed of the allegations in a meeting on March 2, according to an Organized Crime and Corruption Reporting report published on March 3.

Foreign policy consequences of the fraud

Swedish Minister of Foreign Affairs Ann Linde championed an investigation published by national newspaper Dagens Nyheter (DN). The article alleges that the Ukraine-based Milton Group, ostensibly an It support visitor, defrauded victims in adult countries by proposing fake Bitcoin (BTC) investment schemes.

The grouping reportedly scammed victims for over $70 one thousand thousand, with several examples of elderly people losing their life's savings. Milton Group operates mainly out of Kyiv, Ukraine'due south capital.

Linde shared the findings with unnamed Ukrainian officials, expressing her outrage at the findings. She said:

"Information technology is really upsetting to see how they bluff Swedish retirees who accept to go out their homes and live on a minimum subsistence level. So they sit at that place, laughing."

The minister urged the Ukrainian regime to have decisive activity in response to the media report, adding:

"The most important affair is that [the allegations] go attention. I don't know if this information exists in Ukrainian, otherwise information technology is upwardly to DN to make sure information technology does."

Government officials likewise criticized the lack of oversight by Facebook, which allowed Milton Group'southward ads to circulate.

Details of the declared fraud

The investigation was made possible past an unidentified whistleblower who reported on the inner workings of the performance. He claims to have been office of a "retentiveness" squad and was expected to make 300 calls each day. The victims were initially hooked via Facebook ads that targeted people interested in cryptocurrency.

The callers as well ofttimes changed their presented identities to continue "squeezing the money" from clients. Later selling a victim on a phony investment scheme, they would pose as lawyers and financial advisors promising to render the money that the victim invested — for a fee.

Some victims reportedly transferred over $1,000 every month to the group, while one elderly citizen was defrauded for every bit much as $200,000.

The whistleblower too revealed that the "sales" staff received different commissions based on payment method. Transfers via credit bill of fare and transmission services like Moneygram were valued at 4% and 6% respectively. Transfers in cryptocurrencies compensated the "salesman" with as much every bit 9%.