Police in Kazakhstan detain a gang that was forcing IT professionals to operate cryptocurrency farms

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Last Updated on August 7, 2022 by Bitfinsider

A gang of “criminally inclined individuals” and former offenders who pressured those knowledgeable in information and crypto technology to operate unlawful installations for cryptocurrency manufacturing have been apprehended by Kazakhstani authorities. According to a statement released this week by the nation’s Interior Ministry, a large portion of the 23 people who were caught had experience with debt collection and extortion.

The department also discovered that the gang’s illegal crypto mining activities resulted in estimated monthly income for them of $300,000 to $500,000. Police carried out searches and discovered several firearms, including handguns, ammo, and an Kalashnikov assault rifle. It was also discovered that one of the gang members was an army soldier.

According to a report from the news source Eurasianet, investigators were able to determine that the project was highly complex, proving that the organization was not working wholly on its own. According to the online portal that monitors regional trends, during the past few months, it has come to light that significant mining operations in Kazakhstan were connected to prominent businessmen and high-ranking authorities.

Following China’s crackdown on the sector in May of last year, Kazakhstan became a hub for cryptocurrency mining. Its affordable electricity prices drew mining businesses, but their influx led to an expanding energy deficit. In response, the Nur-Sultan government increased a tax charge, shut off power to authorized mining firms on many occasions, and pursued unlicensed miners in order to curb consumption in the industry.

More than 100 underground mining farms were uncovered and abandoned this spring by the Financial Monitoring Agency. In a statement about the offensive, the agency said that some of the operators were companies connected to Alexander Klebanov, the CEO of the Central Asian Electricity Corporation, and Bolat Nazarbayev, the brother of Kazakhstan’s former president, Nursultan Nazarbayev.

Some of the other facilities that were shut down were connected to Kairat Sharipbayev, who is thought to be married to Dariga Nazarbayev’s eldest daughter and the former chairman of the national gas distribution business Qazaqgaz. According to the article, Yerlan Nigmatulin, the brother of the previous lower house speaker, is also accused of having benefited from illegal mining.


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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: Above are some affiliate links and we may collect a share of sales or other compensation from the links on this page.
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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