Key Highlights
- Two suspects in Estonia have been kept in custody over a $1.45 million cryptocurrency scam involving three men.
- The suspects misled investors with false claims about a crypto token and used about 40% of the funds for personal expenses.
- The investigation is being led by the Central Criminal Police and the Prosecutor’s Office under standard legal procedures.
A court in Estonia has remanded two suspects in custody over a $1.45 million cryptocurrency investment scam involving three men who were detained by the Central Criminal Police.
According to a local report, the case is linked to activities between November 2023 and November 2025. Authorities said the group misled investors and risked continuing the crime.
Suspects held as investigation continues
Three Estonian men were first taken into custody by the Central Criminal Police, but the court approved a request from the Prosecutor’s Office to keep two of them detained for up to two months.
Officials said this step was necessary due to the risk that the suspects could continue illegal activities if released. During the investigation, authorities found that investors had transferred about $1.45 million into the company accounts and personal bank accounts connected to the suspects.
The group had been reportedly active for a long period. Authorities found that they started sharing false information as far back as 2022. They used social media platforms, network marketing channels, and public seminars to spread their claims. They spoke to both the public and selected individuals and companies with a goal of convincing people to invest money into their crypto project.
Misleading investors with fake promises
According to investigators, the suspects told investors they were developing a cryptocurrency token that could be listed on an exchange and might grow in value like Bitcoin. These claims made the offer look attractive and promising. However, investigators said there was no real work or investment activity behind these promises.
“Investors were led to believe that their money would be directed into the development of virtual currencies and projects expected to generate returns in the future, but in reality no such investment activity took place,” State Prosecutor Jürgen Hüva said.
He added that around 40% of the funds meant for investment were instead used for personal expenses. Authorities believe the group withheld important information and presented misleading data about their products.
Rise in crypto Ponzi scams
Meanwhile, this case adds to the number of other fake crypto investment cases. For instance, Indian authorities recently arrested Ayush Varshney, co-founder and CTO of Darwin Labs Private Limited, in connection with the GainBitcoin scam, a Ponzi scheme that reportedly took about ₹6,000 crore (~$720 million) from investors by promising unusually high returns through cryptocurrency investments.
The suspect was caught at Mumbai airport while trying to leave the country. Investigators said the scheme used complex digital platforms, including a Bitcoin mining website, a payment gateway, and an investor portal, to make the scam appear real.
In another case, Cambodian authorities arrested 38-year-old alleged crypto scam operator Chen Zhi for his involvement in a reported $15 billion crypto fraud case.
In short, this case shows how easily fraudsters are misusing crypto technology, which is a global risk for investors and needs proper monitoring.
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