June 16, 2024

Vakhitovsky District Court of Kazan has served a three-year jail term to Lilia Nuriyeva. She played a central role in the well-known Finiko Ponzi scam.

Charged with cheating individual investors and involvement in a criminal community, Nuriyeva has been found guilty on both counts. These charges are indicative of the severity of the crimes she committed.

The Finiko Scandal: How It Became a $55 Million Swindle

Finiko, earning comparisons to the notorious MMM Ponzi scheme, enticed investors using forecasts of massive returns from an alleged new cryptocurrency and stock market trading algorithm. Initiated by Kirill Doronin in 2018, Finiko swindled investors until 2021. Its inevitable crash caused major economic harm.

The Ministry of Internal Affairs stated that the total loss for investors was over 5 billion rubles, which is approximately $55 million.

Investigation findings exposed that Doronin and his miscreants went city-to-city in Russia, creating investor interest through hosted workshops. They marketed the promise of sizable returns from an auto-profit generating system and persuaded individuals to take loans and sell their household assets as an investment.

Explore more: [15 Most Common Crypto Scams To Look Out For](https://investmentshoax.com/crypto-scams/)

Initially, the return on investments came as Bitcoin dividends that investors could then cash out. However, following the launch of Finiko’s own digital currency, its value collapsed in less than a month, wiping out all investments.

Despite being identified as a finance pyramid by the Central Bank in 2021, Finiko still continued to bewitch investors. The sudden crash was followed by a complete shutdown of company branches and its online presence. Doronin claimed it was due to a technical error, but investigation reports eventually revealed that the funds were taken abroad by his associate members.

One investor, Lyudmila Yamshchikova, shared her dreadful experience with Izvestia, a Russian news outlet.

She said, “Payments abruptly stopped. I had invested nearly a million [rubles] with the intention of using the interest to pay my mortgage. Half the town was buying apartments, cars, and paying loans. But then the withdrawals ceased.”

Nuriyeva’s received a relatively lighter sentence due to a pre-trial agreement. She will only be behind bars for three years, but initially, she could have faced ten years of jail time.

![alt text](https://investmentshoax.com/wp-content/uploads/2024/05/photo_2024-05-17_15-27-41-4-850×567.jpg.optimal.jpg “Lilia Nuriyeva at the Trial”) Source: [Izvestia](https://iz.ru/1698174/elena-balaian/post-kriptum-pervoi-uchastnitce-piramidy-finiko-dali-realnyi-srok)

Doronin and nine other co-conspirators are currently in pre-trial confinement, facing charges of generating and being part of a criminal community and large-scale fraud. The General Prosecutor’s Office has affirmed their prosecution and sent the case to the Vakhitovsky Court on April 27.

Explore more: [Top Cryptocurrency Scams in 2024](https://investmentshoax.com/crypto-scams)

Finiko was identified as one of the top three receiving counterparties by the Financial Crimes and Enforcement Network (FinCEN,) for Bitzlato, a Russian P2P change. In 2023, Bitzlato’s founder was prosecuted for money laundering in the US.


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Related Questions:

How was the Finiko Ponzi Scheme Conducted?

The Finiko scam was a complex one. It was masterminded by Kirill Doronin who, along with his associates, travelled around Russia conducting master classes to entice investors. They promised large returns through an ‘automated profit generating system’ and encouraged people to invest their savings, take out loans, and even sell their property. Initially, investors did receive dividends in Bitcoin, but the launch of Finiko’s own cryptocurrency saw its value plummet, leaving investors out of pocket.

What happened to those involved in the Finiko Ponzi Scheme?

Key player Lilia Nuriyeva has been sentenced to three years in prison after being found guilty of defrauding private investors and taking part in an organized criminal community. Meanwhile, Doronin and nine other accomplices are currently in pre-trial detention. They face charges of large-scale fraud and participation in a criminal community.

How do I avoid falling victim to a Ponzi Scheme like Finiko?

It’s important to do your own research before investing in any scheme promising high returns. Consult with a professional, and remember that if it sounds too good to be true, it probably is. Investigation and vigilance are key to avoiding such investment traps. Always be wary of any scheme that asks you to put in more money for bigger returns. A legitimately profitable business doesn’t need to rely on incoming funds to pay out its investors.