The Vakhitovsky District Court of Kazan has sentenced Lilia Nuriyeva, a key participant in the notorious Finiko Ponzi scheme, to three years in prison.
Nuriyeva was found guilty of defrauding private investors and participating in an organized criminal community, reflecting the gravity of the charges brought against her.
How Crypto Ponzi Scheme Finiko Conducted $55 Million Scam
Finiko, often compared to the infamous MMM Ponzi scheme, lured investors with promises of high returns through a purportedly unique cryptocurrency and stock market trading system. The scheme, masterminded by Kirill Doronin, operated from 2018 until its collapse in 2021, leaving a trail of financial devastation.
According to the Ministry of Internal Affairs, the scheme caused over 5 billion rubles (~ $55 million) in damages.
The investigation revealed that Doronin and his accomplices traveled across Russia, conducting master classes to attract thousands of investors. They promised substantial returns through an “automatic profit generation system,” persuading people to invest by taking out loans and selling their homes.
Read more: 15 Most Common Crypto Scams To Look Out For
Initially, investors received dividends paid in Bitcoin, which they could withdraw. However, the launch of Finiko’s own cryptocurrency saw its value plummet within a month, wiping out investors’ savings.
In 2021, the Central Bank identified Finiko as a financial pyramid, listing it among companies with signs of illegal activity. Despite this, the scheme continued to attract significant investments until its abrupt collapse.
Offices nationwide closed, and the company’s website went offline. Doronin assured investors it was a technical glitch, but investigators later found that his associates had fled abroad with the funds.
One investor, Lyudmila Yamshchikova from Kazan, recounted her ordeal to the Russian outlet – Izvestia.
“Payments suddenly stopped. I invested nearly a million [rubles], intending to use the interest to pay off my mortgage. Half of the city was buying apartments, cars, and paying off loans. But then withdrawals were blocked,” Yamshchikova said.
Nuriyeva’s sentence was notably lenient due to a pre-trial agreement. She will spend only three years in the prison. Initially, she faced up to ten years in prison.
Currently, Doronin and nine other accomplices are in pre-trial detention. They face charges of organizing and participating in a criminal community and large-scale fraud. The General Prosecutor’s Office approved their indictment, and the case was sent to the Vakhitovsky Court on April 27.
Read more: Top Cryptocurrency Scams in 2024
The Financial Crimes and Enforcement Network (FinCEN) identified Finiko as one of Bitzlato’s top three receiving counterparties. Bitzlato, a Russian P2P exchange, saw its founder charged with money laundering by the US in 2023.
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