Crypto fraud – is it possible to get your funds (cryptocurrencies) back?

Cryptocurrency is becoming an important part of the modern financial world in Ukraine, as in other countries. The popularity of Bitcoin, Ethereum and other types of virtual assets is growing every year. However, the legal status of cryptocurrencies is not clearly defined by current Ukrainian legislation. In this article, we will consider the current issue of crypto fraud as a phenomenon and whether it is possible to return funds (cryptocurrencies).

Legal regulation of the use of cryptocurrency

In 2017, the Verkhovna Rada of Ukraine registered a bill on the recognition of cryptocurrency as a program code, that is, an object of property rights. The initiators of the bill also proposed taxation of crypto, exchange and mining operations in accordance with current Ukrainian legislation.

The actual legalization of cryptocurrency is the Law of Ukraine "On Virtual Assets", adopted by the Verkhovna Rada in September 2021. According to the Law, the circulation of virtual assets was legalized. Their owners were given the opportunity to declare virtual assets and engage in the exchange of virtual funds. The specified Law also created conditions for the registration of cryptocurrency companies founded by foreigners in Ukraine.

In April 2025, the National Securities and Stock Market Commission published a cryptocurrency taxation matrix. Among the proposed taxation options:

• Standard rate.

Is 18% personal income tax (personal income tax) + 5% - military levy.

• Preferential rate.

Depending on the specific conditions, is from 5% to 9%.

The most common types of crypto fraud

The most common types of crypto fraud are:

1. Phishing.
2. Cryptojacking.
3. Using clipper applications.

Let's start with phishing. Criminals create fake websites or send potential victims emails with falsified data. The purpose of such actions is to provide access to users' crypto wallets. It is this data that is needed to steal virtual assets.

Cryptojacking is also a common cybercrime. To carry it out, fraudsters use malicious software. It allows you to obtain the personal resources of a potential victim for illegal mining of cryptocurrencies. For this, access to a tablet, mobile phone or even an entire server is used.

Cryptocurrency “mining” occurs through the use of a malicious PC that gets onto the victim’s device:

• By downloading and installing malware (for example, through an email with a “hidden link”).
• JavaScript via online advertising or website infection.

The Clipper software can change wallet addresses during transactions. This leads to significant financial losses.

What is the liability for cryptocurrency fraud?

The current Criminal Code of Ukraine provides for liability for fraudulent actions related to illegal operations using electronic and computer equipment. The maximum penalty is imprisonment for a term of up to 12 years with confiscation of property. Liability is also provided for forgery of means of access to electronic money and bank accounts. The accused faces a fine of up to 10,000 non-taxable minimum incomes.

Crypto was stolen: what to do?

So, despite the fact that legislative acts have been adopted to regulate the circulation of virtual assets, there are still certain problems. This also applies to issues related to crypto fraud.

If you have become a victim of cybercrime, you need to act as quickly as possible to return the funds. First of all, you need to contact the support service of a specific platform or resource. The specialists of these services have developed a toolkit to solve the problem.

We also recommend enlisting the support of law enforcement officers. There are cybercrime departments operating in Ukraine. The lawyers of our company "Prіkhodko and Partners" will help you correctly file a police report and initiate the consideration of the case in court.

You should not try to recover the lost crypto yourself. Our lawyers specialize in cybercrime and have the necessary professional training. We will use all possible tools to return the lost cryptocurrency. For example, based on cryptocurrency transfers, you can track the location of fraudsters. This will significantly simplify the process of recovering the crypto. Our lawyers will help you get the desired result!

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