Ukrainian financial investigators have charged a local blogger with evading $5 million in taxes through cryptocurrency transactions linked to online affiliate marketing.
Ukraine’s Bureau of Economic Security has accused a prominent local blogger of evading more than $5 million in taxes through a sophisticated scheme involving cryptocurrency transactions, according to a report released on August 16. press release.
The Financial Intelligence Agency says the blogger, known for his involvement in traffic arbitrage and affiliate marketing, orchestrated a complex operation to hide significant income generated from various online industries, including gambling, dating, betting and health products.
While the office has not officially revealed the identity of the blogger, local media reported that indicates The charges are likely to be directed at Oleksandr Slobozhenko, a well-known figure in the Ukrainian IT and influencer community.
Over $5 million in unpaid taxes
The authority alleges that the blogger created a business entity in 2020 without registering it as a legal company, thereby circumventing tax obligations. Despite the company’s financial success, it was never registered with the Ukrainian tax authorities, and no formal employment contracts were signed with its employees, according to the press release.
To further conceal the income, the blogger and his partners converted the profits into cryptocurrency using digital wallets registered to trusted individuals.
“Trusted partners of the suspect registered cryptocurrency wallets using their personal data and documents, and received payments in cryptocurrencies for the company’s traffic arbitration services. Then the virtual assets were transferred to the company’s manager’s electronic wallets and exchanged for US dollars.”
Economic Security Bureau of Ukraine
The investigation revealed that the blogger’s operations, supported by several IT professionals, generated undeclared income exceeding 1 billion liras (about $27 million). None of this income was reported to the tax authorities between 2020 and 2023, resulting in an estimated $5.1 million in unpaid taxes.
As part of the ongoing investigation, investigators have carried out several raids and seized assets including eight luxury vehicles, apartments and other properties located in Kyiv. The blogger now faces charges under Ukrainian law of large-scale tax evasion and money laundering.
Comments are closed, but trackbacks and pingbacks are open.