Kazakhstan police go after ‘suspected’ crypto exchange

Law enforcement found the suspect in his hometown of Almaty after he allegedly scammed residents by operating a fake cryptocurrency platform.

Kazakhstan officials have shut down a suspected fake crypto trading platform and arrested the alleged ringleader responsible for the scheme.

A 23-year-old was taken into custody for the alleged crime, after being “suspected of deceiving residents” by operating a fraudulent cryptocurrency platform in the city of Almaty, according to a Kazakhstan news site.

Police have stated the suspect to be a male, with his name beginning with L, but have not yet confirmed his full title and identity.

According to unnamed “local residents” offering a statement to the police, the suspect had offered them the possibility of raising money by using a fake online crypto platform.

However, after attempting to remove such funds from the platform, the residents of Almaty were seemingly unable to do so.

The platform reportedly holds around $7,000 in investment from an estimated 11 people lured into the crypto investment scheme.

It is expected by officials that the suspect had no intention of “fulfilling his obligations to return the money” after deceiving the individuals who fell victim to the scam.

Moreover, the Kazakhstan police have voiced plans to conduct additional investigations with “operational/search activities aimed at establishing additional episodes” off the back of this attack.

In Kazakhstan, financial fraud “committed on a large scale” is subject to jail time between three and seven years alongside confiscation of property.

Any convicts could also face a deprivation “of the right to hold certain positions or engage in certain activities for up to six years.”

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Written by Isabella Aslam


Isabella is an experienced writer in B2B and B2C journalism. Alongside crypto, Isabella writes and discusses the topics of relationships and psychology. Isabella holds a first-class degree in music journalism and often interviews electronic artists and DJs.