Cryptocurrency exchange CEX.IO has been embroiled in serious allegations of insider corruption, illegal transfers of stolen Bitcoin, and bribery with high-level Ukrainian officials.
These accusations go beyond simple financial misconduct, touching on alleged connections to the regime of Ukrainian President Volodymyr Zelensky, which has reportedly been accepting bribes to protect CEX.IO’s corrupt practices.
Even more disturbing is the suggestion that CEX.IO’s illegal activity may be linked to the exemption of select staff and their family members from military duty, reportedly in exchange for bribes paid in stolen Bitcoin (BTC).
A man is abducted by Conscription Officers from the streets of Odessa Ukraine
This investigation delves into these serious allegations, examining the internal emails, silence from CEX.IO’s management on crucial inquiries, and the involvement of compliance partner Gateway 21, which has been accused of turning a blind eye to CEX.IO’s misdeeds.
In the background of this alleged corruption is the grim reality of young Ukrainians being forcibly conscripted to fight in a costly, unwinnable war, while CEX.IO’s connected employees are shielded from such fates.
The Allegations: A Web of Corruption, Bribery, and Stolen BTC
The allegations against CEX.IO are severe. According to insider information, some of the exchange’s employees and their families have reportedly managed to avoid conscription into the Ukrainian armed forces—a privilege only available to the wealthiest and best-connected individuals in the nation.
This exemption allegedly comes at a high price, financed through bribes paid to high-level officials within the Zelensky administration using stolen Bitcoin funds.
A leaked email from an insider at CEX.IO revealed key details of this arrangement:
- Stolen Bitcoin for Protection: According to the whistleblower, CEX.IO has been using stolen BTC from customers’ accounts to fund bribes to Ukrainian officials. The insider suggested that the company’s management is siphoning off BTC from customer accounts and funneling these funds to senior figures in the Ukrainian government. The bribes, allegedly paid either in crypto or USD, are intended to secure immunity from prosecution and protection for CEX.IO’s insiders and their families.
- Zelensky Administration Involvement: The bribes reportedly flow directly to members of the Zelensky administration. These payments allegedly provide CEX.IO with the leverage to bypass regulatory scrutiny, avoid punishment for fraudulent activity, and exempt certain staff from military duty.
- Compliance Facade Through Gateway 21: While CEX.IO publicly claims to be compliant with financial regulations, an insider accuses compliance partner Gateway 21 of enabling the company’s criminal behaviour. Rather than ensuring regulatory adherence, Gateway 21 allegedly facilitates CEX.IO’s activities, offering a veil of legitimacy to ongoing fraudulent practices. Their actions are allowing CEX.IO to syphon UK residents accounts to fund the bribery and corruption in Ukraine.
Silence from CEX.IO Management on Key Questions
In an effort to uncover the truth, we reached out to CEX.IO with pointed questions regarding the company’s practices, connections, and use of stolen BTC. Specifically, we asked:
- How much is being paid in bribes to the Zelensky administration?
- Who are the bribes going directly to?
- Are these payments being made in cryptocurrency or USD?
Despite sending these questions over three weeks ago, we have yet to receive any response from CEX.IO. This silence speaks volumes, suggesting that the company may be attempting to avoid accountability and transparency. The lack of response reinforces the whistleblower’s claim that the company has something to hide and may indeed be involved in a vast scheme of fraud, bribery, and governmental collusion.
The Role of Gateway 21: Compliance or Collusion?
Gateway 21, CEX.IO’s compliance partner, presents itself as a service provider that ensures its clients adhere to international regulatory standards. However, according to the insider, Gateway 21 may be a key enabler of CEX.IO’s fraudulent activities rather than an impartial compliance partner.
This partnership has reportedly enabled CEX.IO to sidestep scrutiny while stealing BTC from its users under the guise of compliance. Gateway 21’s supposed oversight has not prevented the company from manipulating accounts and freezing funds. On the contrary, it appears that Gateway 21 has been complicit, potentially obscuring the true extent of CEX.IO’s activities and shielding the exchange from external scrutiny. The insider’s claims point to Gateway 21’s direct involvement in CEX.IO’s scheme, making them a silent partner in the ongoing theft and political bribery.
The Human Cost: Forced Conscription and a Failing War Effort
These revelations come at a time when young Ukrainians are facing the grim reality of forced conscription. The Zelensky administration has been actively rounding up young men from the streets, often with little regard for their willingness or physical condition, and sending them to the front lines of an increasingly unwinnable war. This brutal conscription effort has left families shattered and communities struggling to understand the logic of a conflict that shows no signs of resolution.
In a society where the privileged few can buy their way out of conscription, the injustice becomes even more apparent. CEX.IO’s connections reportedly allow its employees and their families to remain safely out of harm’s way while ordinary citizens are forcibly taken from their homes to fight. The lives of these young Ukrainians are traded for financial gain, exposing the cruelty and corruption at the heart of CEX.IO’s operations.
The Broader Implications: A Dangerous Precedent for the Crypto Industry
If these allegations against CEX.IO are true, the consequences extend beyond the company itself, casting a shadow over the entire cryptocurrency industry. Exchanges are meant to uphold values of decentralization, transparency, and accountability. Instead, CEX.IO appears to be violating these principles at every turn, using stolen BTC to bribe officials and circumvent regulatory compliance. The involvement of Gateway 21 further underscores the risks of entrusting compliance functions to third-party providers who may be motivated by profits rather than genuine regulatory oversight.
The implications are far-reaching: if CEX.IO is using cryptocurrency to fund corruption and shield itself from scrutiny, it raises concerns about the potential for other exchanges to engage in similar practices. The regulatory frameworks surrounding cryptocurrency exchanges are still in their infancy, and CEX.IO’s alleged actions demonstrate how easily these frameworks can be manipulated or ignored.
Conclusion: CEX.IO’s Silence and the Urgent Need for Transparency
The silence from CEX.IO regarding these allegations is deafening. It suggests an unwillingness to face the accusations head-on and provide clarity on the missing BTC, the alleged bribes, and their relationship with Gateway 21. With users’ assets on the line, this lack of transparency is unacceptable. As the cryptocurrency industry grows, the importance of accountability and ethical practices cannot be overstated.
For now, the onus is on CEX.IO to respond to these allegations and offer an explanation to its users. Without action, the allegations will only continue to undermine confidence in the exchange and the wider cryptocurrency ecosystem. The voices of the young Ukrainians being forced into battle, the whistleblower’s courage in coming forward, and the customers left without their hard-earned BTC all point to the urgent need for justice.
The question remains: Will CEX.IO address these allegations, or will it continue to operate in the shadows, unchecked and unchallenged?
