Several people defrauded by scam featuring fake Robert Abela video
An alleged victim claimed that she had been defrauded of €52,000
A number of people were defrauded when a 24-year-old unemployed woman used AI-generated videos of Prime Minister Robert Abela to promote fake cryptocurrency investments, a court heard on Wednesday.
Details were given during the arraignment of Kateryna Izotkina, a Ukrainian national with a UK residence permit and no fixed address in Malta.
She pleaded not guilty to money laundering, obtaining money by false pretences, making fraudulent gains and involvement in organised crime.
Police Inspector Andy Rotin explained that it all started with an AI video circulating on social media featuring Abela and promoting investments using cryptocurrency. Several people fell victim to the scam.
An alleged victim filed a report claiming that she had been defrauded of €52,000. The money was transferred in several transactions as well as given in cash.
The police started investigating the case.
In the meantime, this alleged victim and the suspect continued to talk, and the latter continued to ask for more money.
The investigators made a request for a controlled delivery which was approved.
The alleged victim and the suspect agreed on a €10,000 transaction in cash which was to take place at Żurrieq square. Before the alleged victim met the suspect, the police handed the amount in fake €50 notes to the victim who went to meet the woman. After the money was handed over, the woman was arrested by plainclothes police officers onsite.
The court upheld the prosecution’s request for a freezing order of €63,000.
Lawyer Nicholai Bugeja requested bail.
Prosecutor Marica Ciantar objected on the grounds that the investigation was still at an early stage and the alleged victim had not yet testified. She said that there was a real fear that the woman would abscond since she had no ties to the country. Furthermore, while there was an element of “traditional” fraud, there was also an online element.
There was a real fear that the accused would tamper with the evidence, and the prosecution also suspected that the accused also appeared to have ties to a criminal organisation.
Bugeja insisted that the accused cooperated fully with the police. He also argued that the evidence is in the hands of the investigators.
Bail was rejected at this stage and the woman was remanded in custody.
Magistrate Elaine Rizzo presided.
AG lawyer Marica Ciantar prosecuted, assisted by police inspectors Andy Rotin and Duncan Schembri.
Lawyers Nicholai Bugeja and Alexander Boichuk appeared for the accused.