Kazakhstan Police Shut Down “Fake Cryptocurrency Exchange”

The flag of Kazakhstan was on a pole and fluttering in the wind. — Source: Ilya Mitskabets/Adobe

Kazakh police have announced that they have shut down a cryptocurrency trading platform suspected of fraud and arrested the alleged mastermind.

According to Nur.KZ, the Interior Ministry announced that a “23-year-old man” had been arrested.

Police say the man’s name begins with an L and he was born in 1999.

Police have announced that L is “suspected of deceiving residents” by running a fake cryptocurrency platform in the city of Almaty.

A number of anonymous “locals” came forward with a statement to police officers in the city’s Aezov district.

They said the suspect, who also lives in Almaty, offered to raise money using an “online crypto platform.”

However, when they tried to withdraw funds from the “platform,” they reportedly were unable to do so.

The police suspect that L “did not intend to fulfill his obligation to return the car.”

The platform is believed to have attracted investments worth “at least” about $7,000 from at least 11 people.

But police suspect this is just the tip of the iceberg.

Officers said they were conducting additional investigations “intended to establish additional episodes.”

Under Kazakhstan law, “massive” financial fraud is punishable by up to seven years’ imprisonment, as is “property confiscation.”

Individuals convicted in such cases may be barred from “holding certain positions” or “engaging in certain activities for up to six years,” the media said.

Cryptocurrency scams – on the rise in Kazakhstan?

Last month, police in Almaty warned of a rise in cryptocurrency scammers.

According to InAlmaty, officers warned that “the emergence of electronic payment instruments and cryptocurrencies has increased the methods and types of Internet fraud.”

Police officers warned the public.

“Do not invest in dubious projects that promise large dividends on cryptocurrency investments.” […] And talk about the benefits of investing in their company. “

In any case, the country remains a major hub for the global crypto mining industry, and the government has openly courted industrial miners in the past.