Russian Court Jails Organizers of Fake Crypto Investment Training Scheme for Large-Scale Fraud

Two organizers of a fraudulent crypto investment training scheme operating under the name "Territory of Success" have been sentenced to prison terms after being found guilty of large-scale fraud affecting victims across multiple regions of Russia.

On January 19, 2026, the Vakhitovsky District Court of Kazan handed down sentences of six years and four and a half years in a general-regime penal colony to residents of the Republic of Tatarstan, Danil Buranshin and Artem Kasimov. The court found them guilty of defrauding citizens by posing as providers of educational services in the field of cryptocurrency investing. The proven financial damage from their activities exceeded 8 million rubles.

According to investigators from the Investigative Division of the Yekaterinburg branch of the Russian Interior Ministry, the defendants helped organize a criminal group in October 2020 in Kazan under the guise of operating a legitimate investment education company. The operation followed a call-center model, with staff cold-calling random citizens across different regions of the country to identify individuals interested in learning how to invest in cryptocurrency.

Once potential "clients" were identified, so-called sales managers took over. Using a combination of financial jargon and psychological pressure tactics, they persuaded victims to open accounts on a designated online platform. After offering free introductory lessons on trading, victims were encouraged to deposit real money to begin investing.

Investigators found that all client accounts were fully controlled by the fraudsters. Funds that victims believed they were depositing into personal brokerage accounts and converting into cryptocurrency were instead transferred to bank cards registered to straw persons, before ultimately being siphoned off by the organizers.

For a period of time, victims were shown fictitious profits and positive account performance, encouraging them to invest additional funds. Many reportedly took out loans or accumulated debt to continue participating. Eventually, victims were informed that their funds had been lost due to system failures, unfavorable global market conditions, or other fabricated explanations.

In some cases, victims were offered an additional option: for a fee, the company claimed it could help recover the lost funds. Desperate to recoup their savings, many agreed and took on further debt, only to be defrauded again.

Law enforcement officials said that in May 2022, operational measures led police in Sverdlovsk Region to identify the location of the call center in Kazan. The operation was shut down, and both defendants were detained. Investigators conducted extensive evidence-gathering efforts, including consolidating criminal cases from other regions and interviewing all identified victims.

The completed criminal case was sent to court in May 2023. With the recent sentencing, authorities say the case underscores the continued risks posed by pseudo-educational crypto schemes that exploit public interest in digital assets while operating entirely outside regulatory oversight.