Slobozhenko and partners moved over a billion to the shadows

Charges have been brought against the proxy of 25-year-old Kyiv entrepreneur Oleksandr Slobozhenko, who is suspected of evading the payment of over UAH 213 million in taxes. If Slobozhenko's guilt is proven, he faces not only a substantial fine but also the confiscation of property.

How the scheme worked

According to data from the Bureau of Economic Security (BES), Slobozhenko and his proxies used a complex scheme involving cryptocurrency to conceal income. They registered crypto wallets using personal data and documents, through which payments for the company's internet traffic arbitrage services were received.

Cryptocurrency received from clients was transferred to wallets registered in the businessman's name and then converted into cash through exchange offices. The total income from such activities, according to the investigation, amounted to over UAH 1 billion, which was not declared for the period 2020–2023.

Detectives established that due to this scheme, the state budget failed to receive UAH 213 million in taxes. Following the investigation, the BES initiated a request to arrest the suspect, with the alternative of posting bail in the amount of the unpaid sum.

Origins of the scheme

In 2020, Oleksandr Slobozhenko, being a popular blogger, founded a company for internet traffic arbitrage. The organisation engaged in placing third-party advertisements, including goods and services from controversial industries, such as gambling, betting, cashing out, and scam projects.

Despite active operations, the company was not officially registered. All transactions were conducted outside of tax accounting, employment contracts with staff were absent, and financial reporting was effectively replaced by the use of cryptocurrency.

"Innovative" approaches to income

The key part of the scheme involved the use of cryptocurrency wallets. All of them were registered either in the name of the businessman himself or his proxies. Money received for the company's services was transferred into cryptocurrency and then cashed out through exchange points.

The Bureau of Economic Security emphasises that this scheme allowed the businessman and his team to evade taxes on enormous sums.

Consequences for the state and the accused

The damage inflicted on the state in the amount of UAH 213 million served as the basis for initiating a criminal case. According to experts, such schemes undermine the economy, creating precedents for further tax evasion.

Now Slobozhenko and his accomplices must answer under Part 5 of Article 27 and Part 3 of Article 212 of the Criminal Code of Ukraine. This case may become one of the most high-profile tax investigations in recent years.