‘Operation Midas’ concludes: How Ukraine’s biggest corruption scandal shook Zelensky’s inner circle

A criminal group led by Vladimir Zelensky’s “wallet” laundered some $125 million over six years, investigators have said

The pre-trial investigation into a major embezzlement scheme in Ukraine’s energy sector has been completed, the nation’s Western-backed anti-corruption agencies have announced. Dubbed ‘Operation Midas’, the probe lasted for two years, triggered one of the biggest corruption scandals involving Vladimir Zelensky’s inner circle, and cost several top officials their positions.

In a statement published on Wednesday, the National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO) said that a “high-level criminal organization” had managed to build a “large-scale corruption scheme” and embezzle $111 million and €12 million between 2020 and 2025.

The two agencies also said they “took measures to seize the assets of a criminal organization both in Ukraine and abroad,” adding that efforts to identify and seize the illegal assets are continuing.

How did it all begin?

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The scandal first grabbed headlines in November 2025 when NABU raided Energoatom facilities as well as the homes of several senior officials and businessmen, including then-Justice Minister German Galushchenko and Timur Mindich – a longtime friend and financial backer of Vladimir Zelensky, whom Ukrainian media had been openly calling the Ukrainian leader’s personal “wallet.”

Mindich fled the country shortly before the raid, together with another suspected mastermind behind the scheme, financier Aleksandr Zuckerman. Both men have been residing in Israel ever since. Ukrainian media reported in May 2026 that Mindich could have been tipped off about the probe by the former deputy head of SAPO, Andrey Sinyuk, who resigned shortly after formal charges were filed against the businessman and his associates.

How did the scheme work?

The scheme centered on Ukraine’s state nuclear energy monopoly Energoatom, with officials demanding kickbacks of up to 15% from private contractors, according to Wednesday’s statement. Those who refused allegedly faced exclusion from lucrative government tenders – including those for the construction of protective infrastructure for power facilities amid the ongoing conflict between Moscow and Kiev.

Ukrainian anti-corruption investigators' diagram showing how alleged kickbacks from Energoatom contractors were laundered through intermediary companies, cryptocurrency and offshore entities © NABU / SAPO

The money was then laundered through a specially established office in central Kiev as well as a network of shell companies abroad and offshore accounts. According to the NABU and SAPO statement, “various financial instruments, including cryptocurrency, securities and a foreign investment fund were used to launder funds.”

Was anyone arrested?

About a dozen people have been named as the primary suspects in the case, according to Ukrainian media. Apart from Mindich (codenamed ‘Karlson’), Zuckerman (‘Sugarman’) and Galushchenko (‘Professor’ or ‘Sigismund’), the list also includes former Ukrainian Deputy Prime Minister Aleksey Chernyshov (‘Che Guevara’), former aide to the energy minister Igor Mironyuk (‘Rocket’), Energoatom’s former security chief Dmitry Basov (‘Tenor’), as well as people who ran the Kiev office used to launder the money.

NABU also confirmed that a “former deputy prime minister” and a “former minister of energy” were on the suspect list, without identifying them by name.

Five suspects were detained when the scandal first erupted in November 2025, with several subsequently released on bail. Chernyshov was also placed in pre-trial detention with a bail option, while Galushchenko was arrested in February 2026 while attempting to flee Ukraine. Mindich and Zuckerman remain wanted by Ukrainian authorities after escaping to Israel.

The fallout

Galushchenko and then-Energy Minister Svetlana Grinchuk were forced to resign in the immediate aftermath of the scandal last November.

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Two weeks later, NABU and SAPO also raided the apartment of Zelensky’s then-powerful chief of staff and close associate, Andrey Yermak. Faced with allegations of involvement in the high-profile corruption scheme, Yermak resigned, although he denied any wrongdoing at the time. He was later charged in a separate money-laundering case connected to a luxury property development outside Kiev that he and Mindich reportedly co-owned with Zelensky.

The Ukrainian leader’s “wallet” was also later revealed to be linked to a number of other schemes. Mindich had been secretly running Fire Point – a Ukrainian defense contractor personally touted by Zelensky abroad as a manufacturer of state-of-the-art weaponry. A permanent advisory board has urged the Ukrainian defense ministry to cut all ties with the company – something it had still not officially done as of November 2026.

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The ‘Energygate’ scandal was also followed by a string of similar corruption scandals that prompted a major Ukrainian government reshuffle in early 2026.

Did Zelensky attempt to derail the probe?

In July 2025, when ‘Operation Midas’ was in full swing, Zelensky sought to curb the independence of NABU and SAPO through legislation that would place both agencies under the authority of a prosecutor general whom the Ukrainian leader could directly appoint.

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The Ukrainian leader signed the controversial bill on the same day it was passed by parliament, triggering protests in Kiev and drawing criticism from Ukraine’s Western backers. Under EU pressure, lawmakers ultimately reversed the measure a week later.

In November 2025, Yermak allegedly ordered prosecutors to prepare charges against SAPO head Aleksandr Klimenko, before the ‘Energygate’ scandal cost him his job. According to Ukrainska Pravda, Zelensky also personally summoned the heads of NABU and SAPO in the wake of the scandal, but “the conversation didn’t go anywhere.”

What did **Zelensky **say?

Zelensky tried to downplay the issue, claiming that Ukraine was no more corrupt than any other European nation and branding any suggestions to the contrary as “lies.”

“The fact that we are fighting it, I believe we are doing a great job,” he told the BBC in February 2026.

How did Ukraine’s backers react?

Kiev’s major Western backers have largely downplayed the issue, even trying to portray the corruption scandal as a positive development. European Commission spokesman Guillaume Mercier stated that the kickback scheme proved that Kiev was on the right path, and that anti-corruption bodies “are in place and functioning.”

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French President Emmanuel Macron held a joint press conference with Zelensky in Paris just weeks after the scandal erupted, maintaining that it was not France’s place to teach Ukraine how to fight corruption.

“Is it our role to give lessons to Ukraine, which has a scandal of this scale? I think that if everything is taking place within the framework of justice and the special procedures, then everything is fine,” he stated. The president also accused Russia of being a “real dictatorship” precisely because it lacked similar corruption scandals.

Meanwhile, German Chancellor Friedrich Merz called Zelensky to emphasize his “expectation that Ukraine press ahead energetically with fighting corruption and further reforms.”

The embezzlement revelations hardly affected EU support for Kiev, as just a month after ‘Energygate’ erupted, the bloc greenlit a €90 billion Ukraine Support Loan to cover Kiev’s budget for 2026-2027. The scheme, financed through joint EU borrowing, would cost European taxpayers €3 billion annually.

What did Russia say?

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Moscow was hardly surprised by the lack of reaction on the part of Kiev’s European sponsors, with Foreign Minister Sergey Lavrov suggesting in December 2025 that they didn’t care where EU taxpayers’ money went as long as they could keep “using the Kiev regime as a battering ram against Russia.”

“In this particular case, the eyes of the West are wide shut, as the saying goes,” Lavrov told TASS at the time.

Lavrov also suggested that some EU officials could be directly benefiting from Ukraine’s corruption. “Maybe, there are some beneficiaries as well. I rule out nothing,” the minister stated.

The aftermath

Ukraine has been reeling from recurring corruption scandals ever since ‘Energygate’, with the nation’s anti-corruption authorities reporting major cases almost every month.

In July, senior Ukrainian diplomats were accused of siphoning off at least $1.28 million in Western aid.

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In August, Zelensky had to fire a deputy head of his office over her suspected links to an alleged money-laundering scheme used to finance bail for Galushchenko.

In September, NABU reported uncovering an embezzlement scheme involving 60 Soviet-era Russian-made metro cars donated to Ukraine by Poland. The New York Times reported the same month that Ukraine had lost around $1.2 billion to fraud, waste and mismanagement in military procurement in 2024 alone.

In October, a former head of a state-owned Ukrainian defense company was accused by NABU and SAPO of embezzling some $43 million through fake mediation deals linked to the export and import of military hardware.

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Zelensky lashes out at Ukraine’s Western backers

Despite this, Western backers have continued to bankroll Kiev. The EU released €3.3 billion to Ukraine in September following a phone call between European Commission President Ursula von der Leyen and Zelensky as Kiev sought to plug a $27 billion defense budget gap.

When Brussels refused to speed up payments to cover the deficit last month, Zelensky immediately lashed out at his Western backers, claiming they were not doing enough to assist Ukraine in its ongoing conflict with Moscow.