Crypto Investment Fund Exec Lilian Nurieva at Finiko Sentenced to 3 Years for $55M Fraud

YEREVAN (CoinChapter.com) — Lilian Nurieva, former Head of Networks at the Russian crypto investment fund Finiko, has been sentenced to three years in prison for tricking private investors and being part of a criminal group. Notably, she helped dupe investors off $55 million, thus orchestrating one of the biggest financial frauds in the post-Soviet Union era.

How Finiko Fooled Investors

In 2021, Russian authorities started investigating Finiko, finding that her crypto investment fund behaved like a Ponzi scheme. A Ponzi scheme involves taking money from new investors to compensate old ones, until the head decides to cut off the entire chain of investors and steals the money.

Finiko ran a similar scheme with her crypto investment fund from 2018 to 2021, promising huge returns through what they called a “unique automatic profit generation system.”

However, in this case, the head of the Ponzi scam was Kirill Doronin. He traveled around Russia, giving master classes to attract clients. Thousands of people believed they would make a lot of money by investing in cryptocurrencies like Bitcoin.

At first, investors got their dividends and could withdraw money in Bitcoin. But things went bad in 2021. Finiko’s crypto token lost value, the company’s offices closed suddenly, and the website was shut down. Doronin claimed there were technical issues, but it turned out his associates had run away with the money.

Many clients took out loans or sold their homes to invest in Finiko. Russia’s Ministry of Internal Affairs estimated that more than 10,000 people were scammed, losing over 5 billion rubles (about $55 million). The scheme paid old clients with new investors’ money, which is a classic Ponzi scheme move.

Nurieva’s Sentence Reduced for Cooperation

Lilian Nurieva is the first executive sentenced in this case. The Vakhitovsky District Court of Kazan found her guilty of fraud and being part of a criminal organization. She was initially sentenced to four and a half years, but she will serve three years due to time already spent in pre-trial detention.

Prosecutors had requested a six-and-a-half-year sentence. However, Nurieva reduced her time through a pre-trial agreement, helping her avoid a possible ten-year prison term.

Nurieva received a lighter sentence for cooperating with prosecutors, admitting to the charges, and aiding the investigation. This allowed her to be tried separately from the other defendants. Her lawyer, Maria Belousova, said the accusations were fair. Nurieva had invested 40 million rubles in Finiko before joining the scheme. Belousova stated, “When she joined, there were illusions that it was not criminal. Clarity came later.”

Upcoming Trials for Other Defendants

Ten more defendants, including Kirill Doronin, are still waiting for their trials. On April 27, the Prosecutor General’s office approved their charges and sent them to the Vakhitovsky court. They are accused of running a criminal group and committing large-scale fraud. The court will decide their involvement and potential penalties.

This case shows the dangers of crypto investments. It reminds everyone to check thoroughly before investing their money. As the trials continue, more details will emerge about how these scams work and how to protect investors in the future.

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