A group of “criminally oriented individuals” accused of illegal crypto mining was arrested in Kazakhstan. The individuals who came under arrest were also former convicts with past criminal histories. The accused pressured IT specialists with a knack for crypto technology to run illegal cryptocurrency installations for cryptocurrency production. These IT professionals were threatened and blackmailed by suspects with questionable debt collection and extortion backgrounds. The unauthorized crypto mining activities generated commendable profits for these individuals. This incident is perhaps proof of the potential of crypto and the disadvantages that come with that potential. Read along to know more.
The What and Why
Scams and shams come with the territory of crypto. In Kazakhstan, a group of 23 individuals, former convicts with past criminal records came under scrutiny and arrest by the Kazakhstan police for running an illegal crypto mining organization by forcing and threatening IT specialists. As per the statements given by the country’s interior ministry, these activities resulted in notable profits of about $300,000 to 500,000 per month.
A number of weapons including pistols and ammunition were discovered by the police during the searches. In fact, one of the members of the gang is an army serviceman. The searches revealed matters of further gravity adding to the seriousness of the whole issue. The level of sophistication at which these individuals operated is an indication of other forces at work behind them. Suspicions that high-ranking officials and businessmen are associated with these illegal practices also prevail.
Kazakhstan emerged into the crypto spotlight following China’s crypto crackdown. As the tides changed, mining companies found a viable condition particularly due to its low electricity rates. However, the influx of mining companies has resulted in an energy deficit in the country.
More than 100 underground mining farms were discovered and shut down by the Financial Monitoring ministry this spring. According to the reports from the agency, a good majority of these had associations with Bolat Nazarbayev, brother of Nursultan Nazarbayev, the ex-president of Kazakhstan, and Alexander Klebanov. the head of Central Asian Electricity Corporation. A couple of the other facilities which were closed down also had similar associations.
