Ukrainian financial detectives have charged a local blogger with $5 million in tax evasion through crypto transactions linked to online affiliate marketing.
The Economic Security Bureau of Ukraine has charged a prominent local blogger with evading more than $5 million in taxes through a sophisticated scheme involving crypto transactions, according to an Aug. 16 press release.
The financial intelligence agency says the blogger, known for his involvement in web traffic arbitration and affiliate marketing, orchestrated a complex operation to conceal substantial income generated from various online industries, including gambling, dating, betting, and health products.
A suspect during the raid | Source: The Economic Security Bureau of Ukraine
While the bureau has not officially disclosed the blogger’s identity, local media reports indicate that the charges are likely directed at Oleksandr Slobozhenko, a well-known figure in Ukraine’s IT and influencer community.
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Over $5 million in unpaid taxes
The bureau alleges that the blogger established a commercial entity in 2020 without registering it as a legal business, thereby circumventing tax obligations. Despite the company’s financial success, it was never registered with Ukrainian tax authorities, and no formal employment contracts were signed with its employees, according to the press release.
To further obscure the income, the blogger and his associates converted the profits into crypto using digital wallets registered to trusted individuals.
“Trusted associates of the suspect registered cryptocurrency wallets using their personal data and documents, receiving cryptocurrency payments for the company’s traffic arbitration services. The virtual assets were then transferred to the company director’s electronic wallets and exchanged for U.S. dollars.”
The Economic Security Bureau of Ukraine
The investigation revealed that the blogger’s operations, supported by several IT specialists, resulted in undeclared income exceeding ₴1 billion (around $27 million). None of this income was reported to tax authorities between 2020 and 2023, leading to an estimated $5.1 million in unpaid taxes.
As part of the ongoing investigation, detectives conducted multiple raids, seizing assets that included eight luxury vehicles, apartments, and other properties located in Kyiv. The blogger now faces charges under Ukrainian law for large-scale tax evasion and money laundering.
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