Crypto tax evasion gets Ukrainian blogger in trouble

Ukrainian financial investigators have charged a local blogger with tax evasion of $5 million through crypto transactions related to online affiliate marketing.

Ukraine's Economic Security Bureau has charged a prominent local blogger with evading more than $5 million in taxes through a sophisticated crypto transaction scheme, according to an August 16 press release.

The financial news service said the blogger, known for his involvement in web traffic arbitration and affiliate marketing, orchestrated a complex operation to conceal significant revenue from various online industries, including gambling, dating, betting and healthcare products.

Although the office has not officially disclosed the blogger's identity, local media reports indicate that the charges are likely directed against Oleksandr Slobozhenko, a well-known figure in the Ukrainian IT and influencer community.

Over $5 million in unpaid taxes

The office claims that the blogger set up a trading company in 2020 without registering it as a legal entity, thus evading tax obligations. Despite the company's financial success, it was never registered with the Ukrainian tax authorities, and no formal employment contracts were signed with its employees, the press release said.

To further conceal the income, the blogger and his associates converted the profits into cryptocurrencies using digital wallets registered to trusted individuals.

“Trusted employees of the suspect registered cryptocurrency wallets using their personal information and documents and received cryptocurrency payments for the company's traffic arbitration services. The virtual assets were then transferred to the company's head's electronic wallets and exchanged for US dollars.”

The Office of Economic Security of Ukraine

The investigation found that the blogger's activities, assisted by several IT specialists, resulted in undeclared income of over ₴1 billion (about $27 million). Between 2020 and 2023, not a single one of these incomes was reported to the tax authorities, resulting in an estimated $5.1 million in unpaid taxes.

As part of the ongoing investigation, investigators conducted several raids and seized assets, including eight luxury cars, apartments and other real estate in Kyiv. The blogger now faces charges of tax evasion and large-scale money laundering under Ukrainian law.