Key Figure in Crypto Pyramid Scheme Extradited
One of the founders of the notorious crypto pyramid scheme Finiko, identified as Russia’s largest in recent years, has been deported by the United Arab Emirates (UAE). This development follows years of investigation into the fraudulent project that caused significant financial losses to thousands of victims across the post-Soviet space and globally.
Authorities in the UAE have handed over an individual implicated in the establishment and operation of the large-scale Ponzi scheme Finiko to Russian authorities. The financial pyramid collapsed several years ago, inflicting substantial financial damages, and the investigation into its activities and the pursuit of its organizers have continued.
Transfer to Russian Custody
The news of the deportation was confirmed by Irina Volk, the official representative of Russia’s Ministry of Internal Affairs (MVD). She announced that an individual accused of creating and leading a criminal organization, as well as of fraud committed on an especially large scale, was transferred to Russian custody at Dubai Airport.
Volk explained that the suspect was handed over by competent UAE authorities to members of the MVD’s National Central Bureau (NCB), which serves as Russia’s Interpol office and is responsible for international police cooperation. The Russian official did not disclose the identity of the deported individual or specify whether the transfer was part of a standard extradition procedure or another arrangement.
According to preliminary investigations cited by the MVD spokesperson, the alleged perpetrator co-founded the online platform Finiko, which operated as a Ponzi scheme between 2018 and 2021. The scheme’s organizers enticed investors with promises of high returns on funds intended for acquisition of stocks, securities, and digital assets. Payments were accepted in cryptocurrency, and the platform also sold its own token named FNK. However, no actual investments were ever made on behalf of the clients.
As a result of the illegal activity, more than 7,700 victims suffered material damage totaling over 1 billion rubles ($12.7 million).
Ongoing Investigation and International Cooperation
The Investigative Department of the Russian Interior Ministry is continuing its investigation into the criminal case. The individual transferred to Russian authorities had fled abroad after the crypto pyramid’s collapse in 2021 and was subsequently placed on an international wanted list. Volk further detailed that through a series of measures taken via Interpol, the suspect was identified and detained in the UAE in November 2022.
This deportation follows joint efforts involving the MVD’s National Central Bureau of Interpol and the Prosecutor General’s Office of the Russian Federation. The transfer of the individual to Russian custody was agreed upon through negotiations with representatives of the law enforcement agencies of the United Arab Emirates.
While the specific Finiko member deported has not been identified, other high-ranking members of the Ponzi scheme have been apprehended in the UAE in the past. Finiko, which was never officially registered as a legal entity, operated from Kazan, the capital of the Russian Republic of Tatarstan, and had offices throughout the country.
The scheme was reportedly run by several co-founders and their associates. Among them was the alleged mastermind, Kirill Doronin, who was arrested in the summer of 2021. Ilgiz Shakirov, the scheme’s vice president and Doronin’s deputy, was detained in his native Tatarstan in the fall of the same year. Shakirov was one of over 20 defendants in a criminal case initiated in Russia.
Co-founder Zygmunt Zygmuntovich, who reportedly left the country before facing detention, was later captured in the Emirates, according to Russian media reports from 2022. Zygmuntovich was wanted by Russian authorities along with Marat and Edward Sabirov, individuals closely associated with Finiko’s top management. Edward Sabirov was also apprehended in the UAE in 2022.
The actual financial losses incurred by investors from Russia, several other former Soviet states, EU nations such as Germany and Hungary, and the U.S. are believed to be significantly higher than the official Russian estimates.