The Fraud Case Against Techiia IT Holding Co-Owner Oleg Krot Moves to Pechersk District Court

14 January, 13:33
The criminal case against Oleg Krot, co-owner of the IT holding Techiia, who was previously charged with fraud involving cryptocurrency funds of Brazilian citizen and pyramid scheme founder Carlos José de Souza Fuziyama, has been transferred to the Pechersk District Court of Kyiv for trial.

Background of the Case

The initial investigation (Case No. 12022000000001100) was opened by the Office of the Prosecutor General and the National Police in 2022. On June 28, 2023, Krot was officially charged under Part 4 of Article 190 of the Criminal Code of Ukraine, which pertains to large-scale fraud. According to investigators, Krot, together with a colleague, orchestrated a scheme between 2020 and 2021 to unlawfully seize $35 million worth of cryptocurrency belonging to Fuziyama, the founder of Mining Express.

Details of the Alleged Scheme

The fraud reportedly began when Krot proposed that Fuziyama invest $35 million in the construction of a luxury hotel complex with a casino on the banks of the Dnipro River in Kyiv. Previously, Fuziyama had collaborated with Krot on creating a mining data center in Kropyvnytskyi, registered in 2018 as LLC “Mining Express,” owned by LLC “Edelweiss Investment and Trading Company Limited.”

Krot assured Fuziyama that the hotel and casino project would be completed by late 2021 or early 2022. He presented a fabricated project plan and persuaded Fuziyama to transfer $35.34 million in cryptocurrency between September 2020 and April 2021.

To create an illusion of progress on the investment plan, Krot organized a visit for Fuziyama and his partners to Ukraine in November 2020. During the visit, they were shown a plot of land unrelated to the project. Advertising billboards with the name “Fuziyama Entertainment Complex” were displayed on the site to bolster the deception.

False Ownership and Misuse of Funds

Krot and his accomplices reportedly used a controlled entity, “Techiia Holding Limited,” registered in Cyprus, to acquire corporate rights in LLC “Slavutych,” which leases a 5.29-hectare plot of water area in Kyiv. However, no active steps were taken to obtain construction permits, sign contractor agreements, or secure licenses for organizing gambling activities. Instead, the funds were allegedly misappropriated.

Legal Developments

  • First Case (No. 12022000000001100): This case, based on fraud allegations, is currently being reviewed by the court. Prosecutors accuse Krot of systematically implementing his fraudulent plan to divert Fuziyama’s funds without any intention of completing the promised project.

  • Second Case (No. 12024000000001040): Opened on May 31, 2014, this case was closed on November 29, 2023, due to an alleged lack of criminal evidence. However, in January 2024, Krot’s legal team successfully challenged the investigator’s decision in court, reviving the case.

Implications and Unanswered Questions

The fraud allegations against Oleg Krot have raised serious concerns about the integrity of high-profile IT entrepreneurs in Ukraine. The case highlights potential vulnerabilities in cryptocurrency transactions and the regulatory environment surrounding large-scale investments. It remains unclear how such a significant amount of money could have been transferred and misappropriated without earlier detection.

Observers and stakeholders await the proceedings in the Pechersk District Court to shed light on the extent of Krot’s alleged misconduct and whether justice will be served for Fuziyama and other potential victims. The outcome of this trial could set a precedent for handling similar cases in the future, particularly in the rapidly evolving crypto and investment sectors.