Crypto tax evasion lands Ukrainian blogger in $5m trouble

Ukrainian financial detectives have accused a local blogger of evading $5 million in taxes through cryptocurrency transactions linked to online affiliate marketing.

Ukraine’s Economic Security Bureau has accused a well-known local blogger of evading more than $5 million in taxes through a complex scheme involving cryptocurrency transactions, according to an Aug. 16 press release.

The financial intelligence agency says the blogger, known for his work in web traffic arbitrage and affiliate marketing, ran a sophisticated operation to hide significant income from a variety of online industries including gambling, dating, betting and health products.

A suspect during the raid | Source: Ukraine’s Economic Security Bureau

While the Bureau did not officially disclose the identity of the blogger, local media reported that the accusations are most likely directed at Oleksandr Slobozhenko, a well-known figure in Ukraine’s IT and influencer community.

More than $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 avoiding tax liabilities. 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 partners converted the profits into cryptocurrency using digital wallets registered to trusted individuals.

“The suspect’s trusted partners registered cryptocurrency wallets using his personal data and documents and received cryptocurrency payments for the company’s traffic arbitration services. The virtual assets were then transferred to the company’s director’s electronic wallets and exchanged for US dollars.”

Ukraine Economic Security Bureau

The investigation revealed that the blogger’s operations, aided by several IT professionals, resulted in undeclared income in excess of ₴1 billion (approximately $27 million). None of this income was reported to tax authorities between 2020 and 2023, resulting in an estimated $5.1 million in unpaid taxes.

As part of the ongoing investigation, detectives conducted multiple raids, seizing assets including eight luxury vehicles, apartments and other property in Kiev. The blogger now faces charges of large-scale tax evasion and money laundering under Ukrainian law.