in the police Kazakhstan They say they have shut down a suspected fraudulent crypto trading platform, arrested its alleged mastermind.
Per Noor.KZThe Ministry of the Interior announced that a “23-year-old man” had been arrested.
Police said the man’s name starts with L and he was born in 1999.
Police said El was “suspected of defrauding residents” by operating a fake cryptocurrency platform in the city of Almaty.
An unnamed number of “local residents” appeared before police officers in the city’s Auzov district to give statements.
According to him, the suspect, a resident of Almaty, offered him the ability to raise money using his “online crypto platform”.
But when he attempted to withdraw his funds from the “platform”, he was reportedly unable to do so.
Police suspect that L “did not intend to fulfill his obligations to return the money.”
The platform is believed to have raised “at least” $7,000 in investments from at least 11 people.
But police suspect that this may only be the tip of the iceberg.
Authorities said they were conducting additional investigations “with the aim of establishing further episodes”.
Under Kazakhstan law, financial fraud “committed on a large scale” is punishable by imprisonment of up to seven years, as well as “confiscation of property”.
The media outlet said individuals convicted in such cases could be banned from “holding certain positions” or “engaging in certain activities” for up to six years.
Crypto Fraud – On The Rise In Kazakhstan?
Last month, police in Almaty warned of an increase in crypto scammers.
Per in AlmatyThe authorities warned that “with the advent of electronic means of payment and cryptocurrencies,” “the methods and types of Internet fraud are on the rise.”
Officials warned people
“Don’t invest in dubious projects that promise big dividends by investing in cryptocurrencies […] And talk about the benefits of investing in their firm.”
Regardless, the nation remains a major center of global crypto mining industryAnd the government has dealt openly with industrial miners in the past.
Also last month, it was revealed that miners in Kazakhstan Some $7 million worth of taxes paid in FY2022,