Kazakh authorities seize 1 million USTD from a pyramid scheme

Financial authorities in Kazakhstan have seized more than a million Tether from a large Ponzi scheme that converted its proceeds into cryptocurrency.

The organizers lured investors online with promises of high returns for their participation in a project that would earn income by watching short-form videos.

Kazakhstan brings down the financial pyramid, seizes its crypto

The pyramid scheme called “NBC TV” has been dismantled by Kazakhstan’s Financial Monitoring Agency (AFM), local media reported this week.

The investigation, led by its office in Almaty, has identified the alleged mastermind of the Ponzi scheme, which targeted victims on the internet.

The fake project, launched in 2025, had a genuine-looking website and maintained several channels on the popular messenger WhatsApp, with hundreds of members.

“NBC TV” offered participation in a platform supposedly generating income by watching short videos, mostly movie trailers, the AFM unveiled.

It promised 5-10% daily returns to those who purchased its investment packages worth between 11,000 and 160,000 Kazakhstani tenge (approximately $25-$350).

In reality, the money for the payouts came entirely from contributions made by new investors, the watchdog noted in a press release, further detailing:

“Additionally, a referral system was in place, with payouts of up to 10% of the investments of referred individuals, as well as bonuses for second and third-line participants.”

Ponzi scheme hires influencers to convince investors

To make it appear legitimate, the organizers distributed advertising materials on social media and instant messaging apps, Zakon.kz and Kazlenta.kz reported Tuesday. They also published fictitious documents that demonstrated non-existent income.

The fraudsters recruited bloggers to spread the pyramid’s message and administered themed chat rooms, the economic news portal Inbusiness.kz highlighted in a post.

The criminals collected funds across multiple individual accounts, converted them into cryptocurrency via peer-to-peer transactions, and then sent them to different wallets.

Kazakh authorities have seized through a court order a total of 1,057,599 Tether (USDT), worth almost 530 million tenge at the time of seizure.

The main suspect has been ordered to remain in custody, and the criminal case has been handed over to Kazakhstan’s judiciary, the AFM noted.

The government agency also recommended that citizens review information provided by similar investment projects, verify their official registrations and permits, and carefully consider all risks and promised returns before committing any funds.

Astana cracks down on crypto crime

Kazakhstan, which has ambitions to become a crypto hub in Central Asia and the wider Eurasian region, has been moving to regulate its digital-asset economy, which has expanded significantly since the country became a mining hotspot a few years ago.

In the past few months, it lifted some restrictions on mining and took steps to liberalize its cryptocurrency market. It’s preparing to build a national crypto reserve and launch a custodial service.

Combating crypto-related crime has been part of the regulatory efforts as well. Last September, financial and law enforcement authorities in Astana confiscated some $10 million worth of digital coins from another major Ponzi scheme.

Presenting itself as an international investment fund, Amir Capital solicited funds from citizens of Kazakhstan, Kyrgyzstan, Russia, and Belarus, offering investments in crypto-trading and mining projects. It collected funds in major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Tether.

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