NABU detectives hid millions in cryptocurrency

How corruption whistleblowers turn into possible carriers of corruption

Cryptocurrencies have become a real boon for Colombian drug cartels, as well as for Ukrainian officials, MPs, and, surprisingly, anti-corruption activists. It is noteworthy that in Ukraine, those who are supposed to fight this - NABU detectives - are boldly and brazenly hiding their wealth. For example, two-thirds of their declarations, which include "crypto", contain obviously false information.

According to official data, in 2023, 1,834 officials in Ukraine declared cryptocurrency, while a year earlier, about 1,400 did so. The data for 2024 has not actually changed - the number of cryptocurrency enthusiasts among the anti-corruption bloc remains high. In general, the "escape" of officials, MPs and even NABU detectives into crypto is explained simply: this currency has no defined legal status in Ukraine, and its taxation is also not defined at the legislative level. Therefore, any "murky" money that the NABU employees managed to "earn" is camouflaged in cryptocurrency.

The dynamics of cryptocurrency adoption among those who are supposed to catch corrupt officials is frightening. Bitcoins, ether, etc. on the crypto wallets of the Bureau's detectives have become such a popular tool that the NABU leadership, whose previous director was officially recognized as a corrupt official, is now trying hard to avoid a scandal.

Declarations of NABU detectives

The results of the study of the declarations of NABU detectives, who earn an average of UAH 100 thousand per month, are shocking. In total, we found 23 declarations of the  detectives for 2023/24 that contain references to cryptocurrency. In 15 (!) of them, false information was provided, and in two more, the addresses of crypto wallets were hidden, which makes them impossible to verify.

That is, more than 2/3 of the declarations of NABU detectives contain inaccurate or fake data about cryptocurrency! And only a few NABU detectives provided reliable information.

Corruption risks of cryptocurrencies

The biggest corruption risk of crypto is that it fluctuates significantly in price. For example, bitcoin has grown from the first recorded price of $0.003 in 2009 to more than $100 thousand in January this year. This is exactly what makes cryptocurrencies attractive for fake declarations by officials: in case of a rise in price, illegal (read: corrupt) income can be attributed to their rise in price.

The circulation of cryptocurrencies with the deposit and withdrawal of millions to detectives' wallets indicates a possible scheme for legalizing corrupt money. The scheme may be, for example, as follows: a detective is given a bribe. The corresponding amount is "credited" to the wallet and then "withdrawn" from it as cash. Of course, the amount on the wallet is only technically transferred, and due to the constant fluctuations in the crypto exchange rate, the "acquirer" can always explain that these millions are his modest salary, which he invested in the crypto and withdrew when it soared to the sky. You can't dig into that. The only thing that gives the fraudsters away is that millions are sometimes listed in fake crypto wallets. These wallets do not exist in reality. And the millions are very real.

In general, experts identify "money laundering with the use of digital currency" as one of the three main sectors of cryptocurrency crime. The other two are the illegal sale of psychoactive substances and the illegal possession of cryptocurrency itself.

However, it should be remembered that anonymity does not mean complete invisibility - cryptocurrencies always leave a public trace. And there are a number of services that allow you to check the declared data. The declarations of Ukrainian officials are publicly available, which makes it possible for anyone to view them.

The most prominent violators of anti-corruption legislation in the NABU

The first place in our impromptu anti-rating is occupied by a dollar millionaire through his wife (according to his declaration), Senior Detective - Deputy Head of the Second Detective Division of the Third Detective Division of the Main Detective Division, Oleksandr Rykovtsev.

Having analyzed the declarations of the Rykovtsev family since 2015, special attention is drawn to the cryptocurrency Bitcoin purchased in 2016 (it is stated that it is owned by his wife). Rykovtsev noted that from 31.07.2016 to 15.09.2016, Lazurko-Rykovtseva Iryna Yevhenivna purchased 12,49953252 BTC (as of January 1, 2025, their value was 1,169,929.5 USD), which were placed on the Ledger Nano S wallet (public address): 3PLEF43Xg4ZznAdfiG229fJVhpFgi127b9.

However, according to transaction tracking services on the Bitcoin network, no transactions have been made with this crypto wallet. Moreover, it was not registered on the Bitcoin network. The other BTC wallets listed in the 2023 declaration also did not make any transactions.

Although Rykovtsev no longer officially works for the NABU, it seems that he taught others how to use crypto to legalize their dubious wealth.

The second place in our anti-rating is occupied by senior detective Stanislav Braverman, who recently became a hero of scandalous chronicles due to his intimate relationship with a key witness in one of the cases he is investigating. A talented person is talented in everything (c). According to the declaration, Braverman purchased cryptos worth UAH 1,386,132 and sold them for UAH 1,323,782. Interestingly, there were two purchases and two sales. And each time it happened on the same day - first a purchase, then a sale.

It looks very much like legalization of corrupt funds: first, the money was supposedly put into the wallet (no one can trace it), and then it was withdrawn - to a card, for example. This is how more than a million hryvnias appeared "out of nowhere." The relevant authorities have something to ask the senior detective about.

In addition, Braverman bought securities worth more than UAH 1 million 270 thousand during the year. That is, a person with a civil servant's salary bought virtual assets worth UAH 2.5 million without batting an eye. It is strange, to say the least.

The third place goes to Senior Detective Moiseev Oleksandr, who declared the purchase of crypto worth UAH 820,000 on one day and its sale for UAH 756,792 the next.

Like Braverman, it looks like money laundering. Law enforcement and the NACP have to find out to whom or from whom and for what they were received.

There is another coincidence with the first position of the anti-rating: Moiseev purchased securities worth UAH 2.2 million. This is with the same civil servant salary as Braverman.

In general, the "murkiness" of Braverman and Moiseev's virtual assets is evidenced by the speed of their crypto purchases and sales. And most importantly, both of them - contrary to the NACP's requirements - do not have data on crypto wallet addresses. Notably, in 2022, senior detectives Braverman and Moiseev did not have any crypto assets.

Detective Bohdan Osadchyi took the fourth place. He declared cryptocurrencies worth UAH 933,640. A year earlier, his declaration included cryptocurrency worth UAH 396,770. The crypto wealth grew almost 2.5 times in a year - "on paper". It would be a good story if not for the fake nature of most crypto wallet addresses. That is, the detective is artificially increasing his cryptocurrency wealth from year to year. This is only to be able to explain large expenditures from undeclared funds.

Detective Viacheslav Danyliuk is in fifth place: he declared UAH 517,708 in cryptocurrency. Only all of these wallets, according to the analysis, are fake. In 2022, his declaration contained a mention of cryptocurrency worth UAH 232,460. Again, the growth is questionable.

Senior detective Markiyan Slonevskyi is in sixth place. He declared 73,450 UAH of crypto in fake wallets. Although this is a relatively small amount, another interesting thing is that journalists have previously found references in Slonevskyi's declarations to... deposit addresses that could be used for donations and fraud. In other words, for the possible transfer of funds to them by unauthorized persons. It is clear that the legitimacy of the "services" for which the money was transferred is questionable.

Another fact discovered by journalists is the alleged Russian trace in Slonevsky's history. For the past three years, a certain Vladislav Iskenderov has been repaying him with interest (UAH 37850, UAH 139,000, and UAH 164650). According to Russian registration databases, Iskenderov was the sole owner of the aggressor country's ONIX GROUP, which has been operating in Belgorod since 2014 and fulfilling government orders. By a strange coincidence, four days after the NABU detective's corruption report was published, his Russian partner suddenly decided to terminate his company and remove the legal entity from the state registers.

In total, more than a dozen other detectives with lesser amounts declared on fake wallets were excluded from our anti-rating. It seems that their cryptocurrency is waiting for its rapid growth in the future.

Theoretically, the NACP should scrutinize all detectives, without exception, and respond to signs of administrative or criminal offenses and inform the public. It should not behave as it did before. At the moment, it seems that the NABU is under some kind of invisibility umbrella. And when you start digging, you get as many questions to the detectives as to the officials they are supposed to be investigating.

Conclusions.

Judging by the detectives' declarations, it can be assumed that the NABU, which was created to protect the state from corrupt officials, has itself begun to engage in fraud, hiding millions of dollars of money of unknown origin in crypto-wallets.

Detectives are likely to use a common scheme: falsely displaying crypto on their wallets, which grows in value over time and thus helps to "legalize" illegal income. As a result, they have millions in their hands, and beautiful crypto figures shine in their declarations. Or, alternatively, they are collectively illiterate and cannot write down their wallets correctly (lol). What can they investigate then?

This and a number of other scandals in recent months have finally discredited the Bureau as an anti-corruption agency. Not only is the NABU no longer able to fight corruption, but it looks like it is slowly becoming an integral part of it.

The legal community has already reacted to the degradation of the NABU. Well-known lawyers are directly calling for its liquidation because of its harmfulness. They believe that all this is already obvious and impossible to hide. All those involved in the so-called fight against corruption, but in fact the destruction of Ukraine's independence, will be punished.

If the Bureau is not put in order in the near future, its existence will pose a threat to the state, and the need for liquidation will become irreversible, lawyers believe.