Illustration by Tag Hartman-Simkins / Futurism. Source: Getty Images
The past week has not been kind to blockchain entrepreneurs, whose holdings suffered the largest crypto liquidation in history last Friday, an event that wiped more than $380 billion from the market.
During the short but violent crash, the price of Bitcoin fell by 15%, while that of the second largest cryptocurrency, Ethereum, fell by around 21%. The altcoin market has all but collapsed, with many falling by as much as 80%, raising serious doubts about the future of the broader crypto ecosystem.
Depending on where you look, cryptocurrency prices are already rebounding as investors rush to protect against further decline. But the recovery wasn’t underway before Konstantin Ganich, a Ukrainian crypto fund manager and influencer, was found dead in his Lamborghini from a gunshot wound.
Ganich, also known as “Kostya Kudo” on social media, is believed to have lost between $7 million and $60 million in the accident, according to various Ukrainian media sources. Peter Korotaev, journalist who runs the English-speaking blog Events in Ukrainewrote that “much, if not most” of that money belonged to investors.
According to Korotaev, Ganich had claimed in interviews in Ukrainian that his crypto holdings were insured against losses of up to 15%. He added that the crypto tycoon paid investors a fixed monthly sum of 7% based on their buy-in, regardless of market quality – a classic feature of a crypto scam.
Police initially told media that the 32-year-old crypto blogger had committed suicide. Before his death, Ganich was reportedly depressed over the crypto crash and sent goodbye messages to loved ones, according to 44a local news aggregator in Kyiv.
However, according to Independent Ukrainian News Agency (UNINA) — one of Ukraine’s oldest news agencies — Ganich’s acquaintances claim that law enforcement bureaucrats pressured the cryptocurrency trader the night before his death, demanding a share of his earnings. Although not confirmed by state investigators, this allegation was also raised by another news organization, Stranawhich adds that Ganich probably managed funds intended for high-ranking Ukrainian government and police officials.
These claims throw an intriguing wrench into the official story, especially given the day-to-day volatility of cryptocurrency trading. As one of Ganich’s associates said UNINA“If cryptocurrencies committed suicide after every stock market crash, they would all be buried.”
Adding further fuel to the conspiracy’s fire is the fact that the victim’s gun was a gift from Kyryllo Budanov, the head of Ukrainian military intelligence described by Western researchers as Ukraine’s “best spymaster.” Budanov is known for perpetuating massive call center scams on behalf of the Ukrainian government, among other financial espionage activities.
Whether by suicide or murder, it cannot be ruled out that Ganich’s death was the result of his role in the pressure cooker that is the Ukrainian crypto scene. Despite being one of the poorest countries in Europe, Ukraine is one of the world leaders in crypto adoption, with tens of billions of dollars worth of products flowing through the country each year.
“Political and economic relations in Ukraine at the highest levels are based on corruption,” said a crypto investor. Strana. “In recent years, corruption has shifted to cryptocurrency. Cryptocurrency is currently the main nerve center of all Ukrainian corruption.”
Learn more about crypto: A sitting president is making billions from crypto, which seems a bit scandalous
