The First Cryptocurrency Bribe: How MP Odarchenko Bribed Nayem

Members of Parliament frequently become the central figures in corruption scandals. The possible illegal enrichment by Andrii Klochko, influence abuse by Serhii Kuzminykh, power abuse by Ruslan Solvar, and bribery by Oleksandr Yurchenko are vivid examples.

The saddest part is that each of these corruption schemes is “unique” in its own way. Considering the authority and public visibility of a people’s elected representative, such “creativity” severely damages Ukraine’s reputation as it strives to join the European Union.

One of the most inventive corruption stories involves Andrii Odarchenko, a “servant of the people”. According to the investigation, he attempted to bribe the then head of the State Agency for Recovery — and not just with cash, but with bitcoins! We will discuss the first corruption case involving cryptocurrency below.

Odarchenko, university, recovery, bitcoins. Where is the logic here?

In October 2021, Andrii Odarchenko, then a People’s Deputy, became the head of the Academic Council at the State Biotechnological University and was later elected rector of the same institution. Since it is not possible to hold both positions simultaneously, his university contract was suspended.

Times changed when Russia launched a full-scale invasion, heavily damaging Kharkiv’s university buildings and necessitating their restoration. According to law enforcement officers, Odarchenko then considered seeking ‘help’ from Mustafa Nayyem, the head of the State Agency for Restoration and Infrastructure Development of Ukraine at the time.

The People’s Deputy offered the official a $50,000 bribe in bitcoins in exchange for securing funds from the Liquidation Fund for the university’s repairs. Mustafa Nayem reported this to NABU and became a whistleblower. Later, Odarchenko transferred 0.39 bitcoins to him — about $10,000 at the then exchange rate. NABU claims this is the first documented bribe in anti-corruption history to be given in the form of cryptocurrency.

A logical question arises: what is the purpose of offering a bribe to allocate funds? The answer became clear during the court session: Odarchenko aimed to divert up to 20% of the funds allocated for reconstruction. The People’s Deputy himself denied any intention to profit from these funds, claiming they were international money. He also claimed that his conversations with Nayem were intended as jokes and that the accusations were based on a “cynical misunderstanding”.

(Translated from Russian) “I don’t believe in Kharkiv, Mustafa.” How the conversations led to Odarchenko’s exposure

During the selection of a measure of restraint, the SAPO prosecutor presented recordings of several notable conversations, some of which were played at the hearing. It turned out that behind Odarchenko’s seemingly good intentions to restore the university were entirely different plans and motives. Here are some of his most prominent quotes:

1. (Translated from Russian) “I don’t believe in Kharkiv, Mustafa. Two nuclear triads — Russia and the United States — control the situation… What we’re talking about is laughable. Iran and China are already supplying weapons, and everything is chaotic at the front,” Odarchenko shared this pessimistic view on Ukraine’s prospects with Nayem. By the way, the People’s Deputy was elected to Parliament from one of Kharkiv’s electoral districts.
2. (Translated from Russian) “I love cryptocurrency. Have you ever used it? I exchange it with a friend, and you can use it anywhere, even in Lviv! I have exchange offices in Kharkiv and Kyiv — That’s on me. I took them there, these are my people. You say: give it to me somewhere, even in Spain! And it all disappears, not even here!” Odarchenko enthusiastically told Nayem about his interest in cryptocurrency. It is not clear which “his people” he was referring to.
3. (Translated from Russian) “F**k it, that Constitution! It was trampled a long time ago, don’t you know?” — these were the words of the People’s Deputy expressing his disdain for Ukraine’s Fundamental Law.
4. (Translated from Russian) “The main thing is to be promoted everywhere. I don’t know if I’ll be a deputy or not, but I’ll rebuild the university myself””— this is how Odarchenko’s concern for the university, or perhaps his own career after his mandate, was expressed. According to him, however, Kharkiv was not expected to withstand the Russian army’s onslaught.

How Odarchenko refused legal representation

In April 2024, SAPO sent the indictment against Odarchenko to the High Anti-Corruption Court. Two lawyers, Oleksandr Koriukin and Ihor Lypiavka, intended to represent the People’s Deputy during the court hearings.

On one occasion, both lawyers failed to attend the preparatory meeting, requesting a postponement because they were busy with other, more important matters.

There were also instances when only one of the defenders, Ihor Lypiavka, attended the court. He then filed a motion to return the indictment, but the court dismissed it as it was identical to a previously rejected motion. Later, Lypiavka requested to close the proceedings but was unable to fully articulate his demands. As a result, the court dismissed the motion and issued several remarks to the lawyer due to disputes with the court.

After that, Lypiavka requested a 10-minute technical break to prepare a statement challenging the panel of judges. However, when the break ended and the lawyer did not return to the courtroom, the court concluded that he had absconded and began discussing potential disciplinary action against him. Later, Lypiavka did return to the courtroom, but it seems Odarchenko was dissatisfied with the defense, as he refused it at the next hearing.

On July 22, 2024, Odarchenko announced that he had terminated the legal aid contracts with all his defenders and requested the court to postpone the hearing by one month. According to the prosecutor, the ex-MP’s actions are an attempt to delay the case proceedings. The court did postpone the hearing, but only for a week. Odarchenko returned with a new defense attorney, so the court did not need to appoint a public defender.

What are the potential consequences for the People’s Deputy?

Odarchenko was released from pretrial detention almost immediately after his arrest, with a UAH 15 million bail posted on his behalf. If the court issues a guilty verdict, the elected official — who has already been expelled from the “Servant of the People” party — faces up to 10 years in prison under Article 369, Part 4 of the Criminal Code of Ukraine. However, Mustafa Nayem will not face criminal liability, as he reported the crime before receiving the first tranche of the bribe and contributed to exposing Odarchenko.

On June 18, 2024, a panel of judges — Viktor Nohachevskyi, Vitalii Kryklyvyi, and Markiian Halabala — assigned Odarchenko’s case for substantive consideration. This means that the court will subsequently investigate all the circumstances of the case and review the evidence. Given the limited volume of evidence, the trial is expected to proceed relatively quickly, barring any unforeseen circumstances.