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September 21, 2021

Court Denies Appeal of Founder Involved in Alleged $1,500,000,000 Bitcoin Ponzi Scheme

By Daily Hodl Staff

A court in Russia’s Tatarstan region has denied the appeal of the founder involved in the alleged $1.5 billion Bitcoin Ponzi scheme.

According to Russian publication Inkazan, the Supreme Court of Tatarstan upheld the arrest in absentia of Marat Sabirov, the co-founder of Finiko, company which the Bank of Russia put on its list as having signs of a pyramid scheme. The ruling proceeded without the physical presence of Sabirov in court.

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According to blockchain analytics firm Chainalysis, deposits of more than $1.5 billion were allegedly made into Finiko between December 2019 and August 2021. Finiko operated mostly in Eastern Europe and predominantly in Russia and Ukraine.

A report indicates that deposits to the Ponzi scheme ranged between a minimum of 100,000 rubles ($1,360) and a maximum of 81 million rubles ($1.1 million). Participants were required to deposit either Bitcoin (BTC) or Tether (USDT) into the alleged Ponzi scheme that promised returns of up to 30% per month.

The Supreme Court of Tatarstan also upheld the arrest in absentia of other Finiko founders: Edward Sabirov and Zygmunt Zygmuntovich.

The three, who are currently placed on an international wanted list, are alleged to be close associates of another Fininko co-founder, Kirill Doronin. Doronin, who is currently in custody ahead of his trial, sought to be released on house arrest on grounds that he could pay Finiko investors.

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Doronin’s personal assistant and the vice-president of Finiko, Ilgiz Shakirov, was also arrested earlier this month while waiting for the conclusion of the investigation period.

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Featured Image: Shutterstock/marymyyr