The Ukrainian Cyber Police are investigating a large-scale money laundering operation involving funds allegedly stolen from bank accounts and cryptocurrency exchanges, funneled through the unlicensed iGaming operator 1xBet. Authorities say at least $235 million in transactions have been identified, with both Russian nationals and well-known Ukrainian businessmen among the owners of wallets implicated in the scheme.
Details of the Alleged Laundering Scheme
According to information from an ongoing criminal case, the funds were first stolen from banks and crypto exchange accounts. These assets were then disguised as gaming activity on 1xBet, including account top-ups, bets, and casino transactions. The laundering process involved moving cryptocurrency through a series of exchanges, notably Bybit, Binance, OKX, BitGet, Kyrrex, and WhiteBIT. From January 2022 to February 2026, significant amounts were transferred from 1xBet wallets to the Kyrrex exchange, then routed through cold wallets and other centralized exchanges, with some funds passing through unidentified intermediary wallets to complicate tracking.
Regulatory and Enforcement Actions
1xBet operates in Ukraine without a valid license and continues to serve users in the country despite official access blocks, using mirror sites and alternative domains. Ukrainian authorities have already taken steps, including asset freezes on some crypto wallets—among them those belonging to prominent Ukrainian business figures. The case is being pursued under a Ukrainian criminal statute covering large-scale money laundering by organized groups.
Implications for the Industry
This development highlights the risks for operators, affiliates, and suppliers working in or with unregulated markets. The use of iGaming platforms as conduits for laundering illicit funds increases scrutiny from regulators and law enforcement, especially where cross-border transactions and crypto assets are involved. For affiliates and suppliers, association with unlicensed operators can bring reputational and legal risks, while regulators may intensify efforts to block or sanction platforms operating outside the law.
Key takeaways
- Ukrainian Cyber Police are investigating $235 million laundered via 1xBet.
- Funds were disguised as gambling activity and routed through multiple crypto exchanges.
- Both Russian citizens and Ukrainian businesspeople are implicated.
- Regulatory actions include asset freezes and continued efforts to block unlicensed operators.