The Tverskoy District Court of Moscow has delivered a harsh verdict against Krasnodar crypto artist Sergei Galanter. The creator of a project disguised as high-yield investments in erotic NFTs has been sentenced to seven years in a general-regime penal colony. In addition to the prison term, the court imposed a fine of 1 million rubles.
A Scheme Disguised as Art
The investigation established that under the guise of investments in unique NFT tokens, Galanter attracted over 200 investors, collecting approximately $6 million. The mechanism was classic for financial pyramids: promises of colossal returns and a minimum entry threshold of 500,000 rubles. The largest single contribution reached $500,000. The artist actively accepted both cryptocurrency and cash, creating an illusion of flexibility and reliability.
A key role in attracting victims was played by Galanter's wife, popular blogger Maria Afonina. She systematically promoted her husband as a financial genius, showcasing attributes of a luxurious lifestyle on social media. Inspired by this image, investors brought their savings, unaware that their funds were going toward the organizer's personal needs. Only a small portion of the collected money was directed to early investors to maintain the appearance of real payouts.
To date, the criminal case includes 31 proven episodes of fraud. Under pressure from victims, Galanter publicly acknowledged a debt of $6 million and even promised to pay 580 million rubles monthly through the sale of his art. However, in court, he categorically denied his guilt, calling the project's collapse a mere cash flow gap.
Unprecedented Severity of the Verdict
Notably, Judge Alexei Krivoruchko imposed a punishment stricter than what the prosecution requested, which had insisted on six years and a fine of 500,000 rubles. Lawyers note that courts very rarely exceed the term requested by the prosecutor's office. In this case, the defendant's actions were deemed to pose an increased public danger due to the systematic nature of the crimes.
Actual compensation for damages could have mitigated the sentence, but by the time of the final hearing, the victims had not received any compensation. The court also fully satisfied the major civil claims of the victims. The defense has already announced its intention to appeal the verdict.
Expert opinion: This case is a stark reminder that even trendy technologies like NFTs do not protect against classic financial pyramids. The Russian judicial system demonstrates that attempts to use hype assets to deceive investors will result in real and severe punishment, regardless of the creative facade. Investors should remember: promises of super-profits almost always conceal fraud.