Kazakhstanis were lured by the purchase of non-existent virtual shops, with promises of daily income and bonuses for new depositors. As a result, the organizer of the scheme received a criminal conviction, and 474,000 USDT worth 212 million tenge was sent to state revenue. This was reported by Qazaqyia.kz citing Kursiv Media.
What the AFM says
According to the Financial Monitoring Agency (AFM), participants in the project were asked to deposit funds in the USDT cryptocurrency to purchase virtual shops valued from $120 to $49,000.
"Participants in the project were asked to deposit funds in the USDT cryptocurrency to purchase virtual shops valued from $120 to $49,000. In return, they were promised daily income and additional bonuses for attracting new depositors," the AFM said.
At the same time, the goods placed in the virtual shops did not actually exist. Receiving income depended on attracting new participants and their deposits. The deposits were transferred in USDT cryptocurrency through the OKX platform to electronic wallets.
Confiscation of crypto assets
As part of operational measures, it was possible to freeze crypto assets worth 474,000 USDT, equivalent to 212 million tenge. The court ordered the confiscation of these digital assets into state revenue.
The organizer of the structural unit of the financial pyramid, Kairbayev S.Sh., was sentenced to two years of restriction of freedom with confiscation.
Previously reported
It was previously reported that fake AFM employees extorted 15 million tenge from a medical worker in southern Kazakhstan.
This case is seen as part of the fight against financial pyramids and fraudulent schemes using cryptocurrency. Investigative authorities urge citizens to be cautious about projects that promise daily income but do not offer a real product or service.
According to experts, in such schemes the source of income is the money of new participants, so sooner or later they stop, and the last depositors suffer losses. The use of stablecoins such as USDT makes the scheme harder to track, but authorities such as the AFM have the ability to freeze crypto assets.
This case will go down in history as one of the court decisions concerning illegal financial operations in the cryptocurrency market. The 474,000 USDT transferred to state revenue cannot be returned to the victims of the financial pyramid, since according to the court's confiscation decision it became state property.
AFM representatives recommend that citizens check the legality of dubious investment projects before investing funds, and also refer to official sources of information from regulatory authorities.