Introduction
Ukraine’s gambling sector has long been a subject of controversy, with legal reforms attempting to regulate an industry notorious for illicit financial activities. However, recent revelations regarding iBox Bank, formerly a key player in Ukraine’s financial system, have exposed large-scale money laundering operations tied to illegal gambling businesses. The scandal, involving Alyona Dehrik-Shevtsova and her financial empire, has unraveled a network of shadow financial transactions that bypassed regulations and facilitated tax evasion on a massive scale.
The Fall of iBox Bank
On March 7, 2023, the National Bank of Ukraine (NBU) took a decisive step by revoking the banking license of iBox Bank and ordering its liquidation. The NBU cited systemic violations of anti-money laundering (AML) legislation as the primary reason for this drastic measure. The very next day, Ukrainian law enforcement agencies, including the Bureau of Economic Security and the Security Service of Ukraine (SSU), disclosed a sophisticated financial scheme involving iBox Bank officials and over 20 associated entities.
The Fraudulent Scheme Unveiled
According to investigators, iBox Bank played a pivotal role in enabling gambling businesses to evade taxes on a staggering scale. A complex web of unlicensed, mirrored online casinos and betting platforms was established to process transactions illicitly.
The fraudulent operation relied on a number of tactics. Payments were disguised under misleading categories through “miscoding” to avoid detection. Large sums were broken down into smaller amounts to evade scrutiny. Gamblers could deposit cash into iBox self-service terminals, which would then be credited to gambling business accounts, even when transaction limits were exceeded. Businesses involved in this scheme operated under simplified taxation systems and were not VAT payers, resulting in an estimated 400 million UAH in unpaid taxes. Investigators also discovered payments made using Russian-issued bank cards, despite a wartime ban imposed by the National Bank of Ukraine.
With approximately 20 billion UAH funneled through iBox Bank, the scale of the operation revealed a deeply embedded financial crime structure.
Presidential Sanctions and Crackdown
On March 10, 2023, President Volodymyr Zelensky enacted National Security and Defense Council (NSDC) sanctions against a range of individuals and entities involved in shadow gambling operations. Among them were the Kyiv-registered Financial Company ‘Leo’ and its Cypriot offshore counterpart, ‘Leo Partners.’ These companies had their assets and operations in Ukraine blocked for five years.
While these sanctions marked a significant move against the illicit gambling network, they stopped short of directly naming Alyona Dehrik-Shevtsova, despite her strong connections to the involved entities.
Who is Alyona Dehrik-Shevtsova?
Alyona Dehrik-Shevtsova, a businesswoman with a history of controversial financial dealings, has been at the center of the iBox Bank scandal. Her career in the financial sector began in 2013 with the founding of Leogaming Pay, a company that initially acted as a gateway between gamers and online gaming platforms. Over time, her business empire expanded, culminating in the establishment of the Leo national payment system in 2017.
However, her rise to financial prominence was accompanied by a slew of criminal investigations. Reports indicate that between 2016 and 2020, Dehrik-Shevtsova and her associates—including her husband, Yevhen Shevtsov—were involved in numerous legal cases related to fraud, money laundering, and fictitious entrepreneurship. According to the Ministry of Justice, at least ten companies linked to the group were implicated in financial crimes.
The Dark History of iBox Bank
The roots of iBox Bank date back 29 years, initially founded in 1993 under the name ‘Authority.’ Given the connotations of this name in Ukraine’s 1990s criminal underworld, the bank was later rebranded as Agrocombank in 2002. However, it wasn’t until financier Yevhen Berezovskyi acquired it in 2016, bringing in the iBox payment terminal network, that it became known as iBox Bank.
Despite its rebranding, iBox Bank struggled with financial instability, teetering on the edge of bankruptcy and liquidation. This changed in late 2019 when Alyona Shevtsova entered the scene. With her acquisition of nearly 25 percent of the bank’s shares and her appointment as head of its supervisory board in early 2020, the institution was repurposed to facilitate financial flows from her gambling operations.
Regulatory Scrutiny and Financial Penalties
Regulatory authorities had long been suspicious of iBox Bank’s activities. In autumn 2021, the NBU fined the bank 10 million UAH for violating financial monitoring laws and failing to conduct proper due diligence on its clients. This marked the largest fine ever imposed for such infractions in Ukraine.
The violations continued into 2022, with repeated regulatory warnings and financial penalties. The NBU’s concerns intensified as evidence mounted regarding iBox Bank’s role in money laundering and tax evasion, leading to its eventual shutdown in March 2023.
Shevtsova’s Gambling Empire
Despite growing scrutiny, Shevtsova’s financial ventures continued to expand. By 2021, structures associated with her had officially entered the gambling sector. In May 2021, LeoGaming secured a license for establishing a casino and bookmaker’s office at the Odessa-based Alice Place Hotel. Later that year, iBox Bank received authorization from the Commission for Regulation of Gambling and Lotteries of Ukraine (KRAIL) to process payments for online casinos. By 2023, iBox Bank had received yet another license for conducting gambling-related financial activities.
This orchestrated expansion positioned Shevtsova at the center of Ukraine’s gambling industry, with iBox Bank serving as a critical financial conduit. However, the same practices that fueled her success ultimately contributed to the bank’s downfall.
The Future of Ukraine’s Gambling Sector
With iBox Bank’s collapse, Ukraine’s regulatory bodies have taken a stronger stance against financial crimes in the gambling sector. The crackdown on unlicensed casinos, offshore money laundering, and tax evasion is expected to continue, with authorities closely monitoring the industry’s financial flows.
However, questions remain regarding Shevtsova’s fate. While her businesses have suffered sanctions and financial losses, her name remains absent from direct legal actions. Given her history of navigating legal troubles, it remains to be seen whether she will face justice or find another loophole to exploit.
Conclusion
The iBox Bank scandal has exposed a deeply entrenched system of financial crimes in Ukraine’s gambling sector. With billions laundered through illicit schemes, the case underscores the urgent need for stricter financial regulations and enforcement. As authorities continue their crackdown, the outcome of this high-profile case will likely shape the future of Ukraine’s financial and gambling industries.
References
1. https://antimafia.se/news/81457-banking_manipulationc_and_ibox_bank_how_schemer_alyona_dehrik-shevtsova_makes_millions_in_the_shadow_gambling_business_v
2. https://kompromat1.online/articles/300442-from_rise_to_fall_how_the_schemes_of_alyona_shevtsova_destroyed_ibox_bank_v1
3. https://compro-r.com/item/57764-did-money-laundering-and-gambling-fraud-become-the-foundation-of-ibox-bank-s-operations_under-alyona-dehrik-shevtsova-s-leadership
4. https://vlasti.live/news/141273-delo_byvchej_vladelitsy_ajboks-banka_bylo_peredano_v_drugoj_sud_v_svjazi_s_obvinenijami_v_dache_vzjatki_sudjjam
5. https://vlasti.live/news/131785-mahinatcii_i_otmyvanie_deneg_pochemu_zvezda_finteha_alena_shevtsova_vzjalasj_za_zachistku_informatsii_o_sebe_v_seti
