Associated Incidents
A 24-year-old Ukrainian national has been remanded in custody after being accused of defrauding several people in Malta through a cryptocurrency scam promoted with an AI-generated video of Prime Minister Robert Abela.
The woman, identified as Kateryna Izotkina, who holds a UK residence permit but no fixed address in Malta, was arraigned in court on Wednesday. She pleaded not guilty to charges of money laundering, fraud, illicit gains, and involvement in organised crime.
During the sitting, Inspector Andy Rotin explained that the case began when a deepfake video featuring Abela circulated on social media, falsely endorsing cryptocurrency investments. Several individuals fell victim to the ruse.
One complainant claimed she had been tricked out of €52,000, transferred both through multiple transactions and in cash. Investigators discovered that the accused continued to press the victim for further sums, even after the initial losses.
To apprehend the suspect, police organised a controlled delivery. The victim arranged to hand over €10,000 in Żurrieq square, using counterfeit €50 notes supplied by police. Plainclothes officers arrested Izotkina immediately after the handover.
The court issued a freezing order on €63,000 of the accused's assets.
Defence lawyer Nicholai Bugeja requested bail, emphasising that Izotkina had cooperated with the police and that investigators already held the relevant evidence. However, prosecutor Marica Ciantar opposed the request, stressing that the inquiry was still in its early stages, the complainant had not yet testified, and the accused posed a flight risk due to her lack of ties to Malta. Ciantar also highlighted concerns about possible tampering with evidence and links to a criminal network.
Magistrate Elaine Rizzo ruled against bail, ordering the woman's continued detention.
The case is being prosecuted by AG lawyer Marica Ciantar, assisted by Inspectors Andy Rotin and Duncan Schembri. Lawyers Nicholai Bugeja and Alexander Boichuk appeared for the defence.