Kazakhstan launches inquiry into Bincloud over alleged ‘Ponzi Schemes’

Lavina Daryanani
Source: Scholary Open Access 2022

Kazakhstan authorities have commenced a “pre-trial” investigation into crypto mining facility Bincloud. The mining business has been suspected of being a crypto pyramid scheme by the nation’s Financial Monitoring Agency.

Authorities contend that it has been “established” that the alleged Ponzi scheme had lured investors via prominent messaging apps. The translated version of the official statement read,

“It has been established that the financial pyramid “BINCLOUD” was organized through the messengers “WhatsApp” and “Telegram” with the attraction of funds from citizens.”

Bincloud’s program, as such, convinced the masses to divert funds into the project by offering mining equipment rentals. As a reward, they were told that they’d get roughly 5%-6% of the invested amount on a daily basis. Per the statement, the perpetrators withheld 16% of users’ funds.

“At the same time, when withdrawing income from clients, 16% of the total amount is withheld in favor of the organizers of the financial pyramid.”

Authorities further asked victims of the suspected Ponzi scheme to contact the “territorial departments” of the agency to report their cases.

Illegal crypto mining in Kazakhstan

In another recent development, Kazakh authorities arrested several people who were regarded guilty of forcing a professional to run an illegal crypto mine. Per the official report, the Ministry of Internal Affairs, in conjunction with Kazakhstan’s national security service, found 7 people suspected to be members of the gang. Notably, a 36-year-old IT professional was forced to organize and take charge of the proceedings.

Another gang of 3 members was arrested when authorities searched for illegally stored weapons, the report noted. The group, as such, comprised of former convicts and “criminally oriented persons.” Leaving aside illegal debts, the perpetrators had knocked off debts and were involved in extortions as well. The report went on to also reveal,

“Due to the activities of illegal mining farms under their control in the territory of the Talgar district of the Almaty region, the criminals received a monthly profit in the amount of 300-500 thousand US dollars.”