Unlicensed Crypto Exchange Busted in North Kazakhstan

Three individuals in North Kazakhstan have been sentenced for running an unlicensed cryptocurrency exchange operation that processed over 680 million tenge in transactions, Orda.kz reports.

The Financial Monitoring Agency reports that an investigation revealed the group charged fees to convert cryptocurrency into tenge without proper licensing.

Financial records showed the operation served 380 clients.

The court handed down prison sentences ranging from 2.5 to 3.5 years.

They confiscated property worth about 400 million tenge, including assets worth about ten million tenge, real estate worth 150 million tenge, five cars worth a total of 213 million tenge, an ATV worth 12 million tenge, and expensive computer equipment, the Financial Monitoring Agency stated.

The agency noted that illegal cryptocurrency exchanges pose significant risks as they bypass customer identification requirements and transaction monitoring, making them attractive to criminals, including drug traffickers and cyber criminals.

This case follows a similar conviction in Astana, where two residents were found guilty of illegal entrepreneurship after running an unauthorized cryptocurrency exchange that generated over seven billion tenge.

Original Author: Alina Pak