Ukraine busts conversion-center network that moved 23.5 billion hryvnias since 2023
Ukraine's Bureau of Economic Security and the Office of the Prosecutor General exposed a network of "conversion centers" that handled an estimated 23.5 billion hryvnias in transactions since 2023. Investigators carried out 50 searches in Kyiv, Kharkiv, and Odesa, seizing unregistered cash and notifying suspects of suspicion.
Key points
- Since 2023, the conversion-center network handled about 23.5 billion hryvnias in financial transactions.
- Monthly turnover was roughly 500 million hryvnias.
- Estimated tax evasion from the scheme is around 3 billion hryvnias.
- BEB, under OPG procedural guidance, conducted 50 searches in Kyiv, Kharkiv, and Odesa.
- Unregistered cash worth millions of hryvnias was seized during the searches.
- Funds were withdrawn from the financial system through cryptocurrency, according to the OPG.
- BEB director Oleksandr Tsyvinskyi announced the operation on September 20; further details were promised for September 21.
Why it matters
The alleged tax evasion — estimated at about 3 billion hryvnias — represents a significant loss to the Ukrainian budget and illustrates the scale at which illicit financial flows can operate. The use of cryptocurrency to withdraw funds points to evolving money-laundering methods, while 50 searches across three major cities indicate a coordinated, multi-regional criminal network. The operation is part of Ukraine's ongoing law-enforcement effort to dismantle large-scale money-laundering infrastructure.
What happened
On September 20, the Bureau of Economic Security (BEB), under the procedural guidance of the Office of the Prosecutor General (OPG), announced the exposure of a network of conversion centers that processed roughly 23.5 billion hryvnias in transactions since 2023, with monthly turnover near 500 million hryvnias. Investigators carried out 50 searches in Kyiv, Kharkiv, and Odesa, seizing unregistered cash worth millions of hryvnias. According to the OPG, the criminal organization used a conversion center to withdraw funds through cryptocurrency, with estimated tax evasion of about 3 billion hryvnias. Suspects have been formally notified of suspicion. The operation was conducted with the Cyber Police and either the State Border Guard Service or the State Customs Service, depending on the account. BEB and the OPG said more detailed information would be released on September 21.
Where reporting differs
Ukrainian sources disagree on which agency partnered with BEB and the OPG in the operation: some name the State Customs Service, while others name the State Border Guard Service. Both accounts agree the Cyber Police was also involved.
Background
Conversion centers are informal financial operations used to convert cash into non-cash form, or vice versa, often to evade taxes or launder proceeds of crime. The scheme was announced by BEB director Oleksandr Tsyvinskyi on September 20, with further details promised for September 21.