UAE hands over Ponzi scheme Finiko co-founder to Russian authorities

One of the founders of the notorious crypto pyramid scheme Finiko, Russia’s largest in recent years, has been deported by the United Arab Emirates (UAE).

Thousands of victims in the post-Soviet space and around the world lost millions of dollars to the fake investment project, officials in Moscow reminded.

Finiko co-founder handed over to Russia’s Interpol office

Authorities in the UAE have deported an individual involved in the establishment and operation of the large-scale Ponzi scheme Finiko, Russian media reported.

The financial pyramid crumbled a few years ago, causing serious financial damages, but the investigation into its activities and the manhunt for some of its organizers continue.

The news of the deportation was announced by Irina Volk, the official representative of Russia’s Ministry of Internal Affairs (MVD).

She told TASS that a “person accused of creating and leading a criminal organization, as well as of fraud committed on an especially large scale,” has been transferred to Russian custody at Dubai Airport on Wednesday.

Volk explained that the suspect has been handed over by competent UAE authorities to members of the MVD’s National Central Bureau (NCB). Known as Russia’s Interpol office, the NCB is responsible for international police cooperation.

The Russian official did not clarify whether this was part of a standard extradition procedure or some other arrangement, and did not reveal the identity of the deported.

The MVD spokesperson only noted that, according to preliminary investigations, the alleged perpetrator co-founded the online platform Finiko, which functioned as a Ponzi scheme between 2018 and 2021.

The organizers of the scam lured investors by promising high returns on funds raised to acquire stocks, securities, and digital assets. It accepted payments in cryptocurrency and sold its own token called FNK. No actual investments were ever made on behalf of the clients, however.

Irina Volk summed up:

“As a result of the illegal activity, more than 7,700 victims suffered material damage totaling over 1 billion rubles ($12.7 million).”

Finiko’s long saga continues to unfold

The Investigative Department of the Russian Interior Ministry proceeds with its investigation into the criminal case, Volk highlighted.

The individual, handed over to Russian authorities, fled abroad after the collapse of the crypto pyramid in 2021 and was put on an international wanted list. Volk further detailed:

“Thanks to a series of measures taken through Interpol, the suspect was identified and detained in the UAE in November 2022.”

The deportation follows joint efforts by the MVD’s National Central Bureau of Interpol and the Prosecutor General’s Office of the Russian Federation.

The person’s transfer to the Russian side was agreed upon in negotiations with representatives of the law enforcement agencies of the United Arab Emirates.

While the alleged Finiko member was not identified, high-ranking members of the Ponzi scheme have been arrested in the UAE in the past.

Finiko, which was never officially incorporated as a legal entity, operated out of the city of Kazan, capital of the Russian Republic of Tatarstan, and had offices across the country.

It’s known to have been run by several co-founders and their accomplices. Among them was the pyramid’s alleged mastermind, Kirill Doronin, who was arrested in the summer of 2021.

Ilgiz Shakirov, the phantom company’s vice president, Doronin’s deputy, was detained in the fall of that year, in his native Tatarstan. He was one of over 20 defendants in a criminal case initiated in Russia.

Co-founder Zygmunt Zygmuntovich, who left the country on time to avoid 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, close associates of Finiko’s top management. Edward was also apprehended in the UAE, again in 2022.

The actual losses from the activities of the pyramid, incurred by investors from several other former Soviet states besides Russia, EU nations such as Germany and Hungary, as well as the U.S., are believed to be much higher than the official Russian estimates.

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