Crypto scammer who duped movie star and professional fighter out of over $3m jailed for six years

A businessman who devised crypto schemes to defraud several wealthy Muscovites — including Pavel Derevyanko, one of Russia’s best-loved actors — will spend the next six years in prison.

Moscow’s Presnensky District Court found the man, Grigory Muluzyan, guilty of fraud “on an especially large scale,” the city’s prosecution service reported.

“Victims handed over their money to Muluzyan in cash during personal meetings at his office in Moscow,” prosecutors told the court. “He tricked them into believing they could increase their income by investing in cryptocurrency.”

The sentence highlights the growing threat of crypto-related crime. As the popularity of crypto continues to rise rapidly in Russia, fraudsters are taking advantage of the hype around Bitcoin and other tokens by devising increasingly sophisticated schemes.

‘Guaranteed rewards’

Derevyanko is the star of scores of hit Russian films and drama series. In 2020, he won a Golden Eagle Award for his role in the series “House Arrest.” The Golden Eagles are Russia’s equivalent of the US Academy Awards.

The court heard that Muluzyan ran a range of crypto fraud schemes from December 2021 to January 2023.

He told five high-net worth clients, including Derevyanko, that he was “a crypto investment expert,” prosecutors said.

Muluzyan promised all his clients high returns on their stakes and guaranteed monthly earnings.

The court heard he provided them with false information about his business operations, and said he had access to “unique tools” that helped him ensure all his crypto investments were profitable.

Derevyanko handed the fraudster a total of $3 million after selling his property holdings, Russian media outlet RBC reported.

The other victims were identified as the professional middleweight boxer Alexey Semykin, a leading movie director, and a married couple.

Muluzyan initially paid his victims what he said were “interest payments,” but these quickly dried up, the court heard.

Crime crackdown

Police initially estimated the damages incurred at $4.6 million when they launched a criminal case against Muluzyan in 2023.

By the time of his arrest in 2024, prosecutors explained, he had begun repaying his victims and “partially admitted his guilt.”

However, $1.4 million worth of the embezzled funds remained unaccounted for, the court heard.

Prosecutors have vowed to clamp down on crypto-related crime, with a court in Omsk jailing three people for robbing a Russian citizen of their cash and crypto at knifepoint earlier this month.

Politicians have also warned that some scammers are posing as fundraisers for Russians who want to give humanitarian aid to people in Iran.

Scammers have asked for Bitcoin, Ethereum, and XRP donations to buy food, blankets, and portable gas heaters.

However, they are actually pocketing the coins they receive, All-Russia People’s Front officials said this month.

Tim Alper is a News Correspondent at DL News. Got a tip? Email him at [email protected].