Major Crackdown in Kazakhstan: Police Shut Down Fraudulent Crypto Exchange and Arrest Key Figure

Police in Kazakhstan have arrested a 23-year-old man suspected of operating a fake cryptocurrency trading platform.

The man, whose name begins with L and was born in 1999, is accused of deceiving residents of the city of Almaty by offering them the ability to raise money by using his “online crypto platform.”

However, when the victims attempted to withdraw their funds from the platform, they were unable to do so. Police suspect that the man did not intend to fulfill his obligation to return the money.

The platform is thought to have amassed at least $7,000 worth of investment from at least 11 people. However, police suspect this may only be the tip of the iceberg.

Officers are conducting additional investigations aimed at establishing additional episodes.

Under Kazakhstan’s law, financial fraud committed on a large scale is punishable by imprisonment of up to seven years, as well as confiscation of property. Convicted individuals in such cases can be barred from holding certain positions or engaging in certain activities for up to six years.

This is the latest in a series of crypto fraud cases in Kazakhstan. Last month, police in Almaty warned of a rise in crypto scammers. Officers warned the public not to invest in dubious projects that promise big dividends by investing in cryptocurrencies.

Despite the risks, Kazakhstan remains a major hub of the global crypto mining industry. The government has openly courted industrial miners in the past.