07.04.2025 Cybercrimes Money laundering

From the invaders of Crimea to the “hero” of the Armed Forces of Ukraine – who sold Ukraine for bitcoins: the shadow empire of Crypto Finance Club

Ukraine is at war, but even in this critical time, some individuals and organizations continue to profit from the chaos, undermining the country’s economy and security. One such example is the activities of the Crypto Finance Club (C1C) network, which, behind the facade of financial consulting, hides a large-scale criminal scheme.

At the center is Evgeny Alexandrovich Sotnichenko, a Russian citizen who created a shadow empire for money laundering, terrorist financing and capital outflow abroad. Together with him, high-ranking officials of the SBU, the BES, the State Tax Service and even prosecutors are in cahoots. How does this scheme work, who is covering it up, and why are law enforcement officers silent?

Who is Yevhen Sotnichenko?

Yevhen Sotnichenko is a native of Russia who entered Ukraine in 2015 through the occupied territories of the so-called L/DPR. Using corrupt ties in the State Migration Service, he legalized his stay by obtaining a Ukrainian passport. However, in 2022, the decision to grant him citizenship was canceled due to his submission of deliberately false information, and his passport was declared invalid. But this did not stop Sotnichenko from launching large-scale criminal activities in Ukraine.

Together with his brother Serhii Sotnichenko, who has a Russian passport and lives in Kerch, Yevhen created a network of crypto exchanges under the brand name Crypto Finance Club (C1C). Officially, the company positions itself as an international consulting center with five years of experience working with businesses and individuals. But behind the screen is something else: illegal cryptocurrency trafficking, money laundering, and financing of terrorist groups in the occupied territories.

In 2023, Yevhen Sotnichenko signed a contract with the Armed Forces of Ukraine, declaring himself a citizen of Ukraine, although his citizenship had been revoked. At first, he was listed as a rigger, then became a machine gunner and even joined the foreign legion. In October 2023, the National Security and Defense Council awarded him a commendation, a medal, and a Glock 17 pistol. But he has no real military merit – Sotnichenko was regularly spotted outside the unit in his “free time.”

How the scheme works: from underground exchangers to millions of dollars in turnover

The Crypto Finance Club network operates through ProfinCenter Ukraine LLC, registered in Kyiv at 6a Yordanska Street, office 7. The founder of the company is Oleg Goza, but Sotnichenko remains the actual curator. The main activity of the company is “activities in the field of law”, but the reality is far from what is stated.

There are two underground crypto exchanges in the Pecherskyi and Shevchenkivskyi districts of Kyiv, which look unremarkable but are equipped with surveillance cameras. Unidentified men regularly take cash from there. These points are not licensed by the NBU, but provide services for exchanging cryptocurrencies, legalizing income from call centers, gambling, and other illegal sources.

In two weeks, the network earns from $108 to $400 thousand in commissions alone, and the total turnover of crypto assets reaches $2-5 million per month.

The funds are withdrawn through fake bank cards and drop services to the wallets of the beneficiaries, in particular in Russia and the L/DNR. All this is done with the assistance of affiliated payment systems and corrupt officials.

Who covers Sotnichenko’s business?

Sotnichenko does not act alone. He created an organized criminal group called the Krypton Carriers, which includes officials from the SBU, the Bureau of Economic Security, the State Tax Service, and the Prosecutor General’s Office. These individuals systematically receive bribes: from $15 thousand per month for “covering” the network’s activities. For example, employees of the National Police, in particular the National Police’s DID, knowing about the criminal activity, not only ignore it, but also use the financial services of C1K in their own interests.

Among the patrons are the prosecutors who refused to extradite Sotnichenko to Russia, despite the request of the Russian Prosecutor General’s Office regarding his crimes (money laundering, organization of a criminal group, etc.). In Ukraine, the investigation is slowing down: the criminal proceedings №62022000000000297, opened on the facts of S1K’s activities, are moving slowly, despite searches and seizures of evidence.

Evidence of crimes: cash in the ceiling and bitcoins from Russia

In June 2022, SBI investigators conducted a search at the office of ProfinCenter Ukraine LLC. In the presence of employees, they seized an envelope:

  • An envelope with the inscription “Director of the LLC” – $500.
  • An envelope “Alena” – $750 and 7700 UAH.
  • A bag in the ceiling – $167,441, €23,125 and 126,783 UAH.

Sotnichenko also received 1,000 bitcoins through fraud with Russian investors, and legalized some of the money by buying real estate in Europe.

In addition, the C1K network transferred funds to Moscow and St. Petersburg, from where they were used to support the DPR and LPR. This is confirmed by the State Financial Monitoring Service of Ukraine, which has detected transactions of the network’s employees (for example, the purchase of an apartment for UAH 19.1 million with an official income of UAH 0.09 million over two years).

So, despite numerous pieces of evidence, Sotnichenko’s case is stalled. Searches, criminal proceedings, requests from the Russian Federation – all this has not led to the arrest or suspension of S1K’s activities. Corruption in the SBU, the BES, the State Tax Service, the State Financial Monitoring Service and the prosecutor’s office paralyzes the system. While Sotnichenko and his accomplices are earning millions, Ukraine is losing money that could be spent on defense.

We have already submitted relevant materials to law enforcement and regulatory authorities. We are waiting for their response.

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