Fun

Police in Kazakhstan Arrest Gang Forcing IT Specialists to Run Crypto Farms

News Feed - 2022-08-07 06:08:18

Police in Kazakhstan Arrest Gang Forcing IT Specialists to Run Crypto Farms


Law enforcement in Kazakhstan detained members of a crime group suspected of forcing IT experts into operating underground facilities for cryptocurrency mining with threats and blackmail. The racketeers allegedly made up to half a million U.S. dollars a month from their business. Kazakhstan Busts Illegal Crypto Mining Organization, Detains Dozens


Authorities in Kazakhstan have arrested a group of “criminally oriented individuals” and former convicts who pressured people savvy in information and crypto technology to run illegal installations for cryptocurrency production. Many of the apprehended 23 people had a background in debt-collecting and extortion, the country’s Interior Ministry said in a statement this week.


The gang was making estimated profits in the range of $300,000 to 500,000 each month as a result of their unauthorized crypto mining activities, the department further revealed. During searches, police found a number of weapons, including pistols, ammunition and a Kalashnikov assault rifle. One of the gang members turned out to be an army serviceman.


Investigators were able to establish that the undertaking was quite sophisticated, an indication that the group was not working entirely on its own, the news outlet Eurasianet noted in a report. Over the past few months, it has emerged that major mining operations in Kazakhstan were linked to high-ranking officials and powerful businessmen, added the online portal which covers developments in the region.


Kazakhstan became a crypto mining hotspot after China cracked down on the industry in May, last year. Mining companies were attracted by its low electricity rates but their influx caused an increasing energy deficit. The government in Nur-Sultan responded by taking steps to reduce the consumption in the sector by cutting power supply to licensed mining enterprises on a number of occasions, increasing a tax levy, and going after illegal miners.


This spring, the Financial Monitoring Agency discovered and shut down more than 100 underground mining farms. Commenting on the offensive, the agency remarked that among their operators were firms affiliated with Bolat Nazarbayev, brother of Kazakhstan’s ex-president, Nursultan Nazarbayev, and Alexander Klebanov who heads the Central Asian Electricity Corporation.


Some of the other closed down facilities were linked to Kairat Sharipbayev, who is the former chairman of the national gas distribution company Qazaqgaz and is believed to be married to Nazarbayev’s eldest daughter, Dariga. Yerlan Nigmatulin, brother of the former speaker of the lower house of parliament, is also suspected of having profited from unauthorized mining, the report details. Tags in this story Blackmail, criminal group, Crypto, crypto farms, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, experts, gang, illegal mining, IT, Kazakhstan, Law Enforcement, Miners, mining, Police, racket, specialists


Do you expect Kazakhstan to continue to clamp down on cryptocurrency mining? Tell us in the comments section below. Lubomir Tassev


Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Kosovo Renews Crypto Mining Ban Amid Rising Energy Prices MINING | 3 days ago Bitcoin"s Mining Difficulty Rises for the First Time in 57 Days, BTC Hashrate Slipped 1.7% Lower in Q2 MINING | 3 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons, Vladimir Tretyakov Previous articleL2 Scaling Solution Arbitrum Schedules Nitro Rollup Stack Upgrade for August 31 Next articleChina and Taiwan’s Potential Economic Impact, Bear Market Warnings, and FC Barcelona Metaverse News — Bitcoin.com News Week in Review Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework


Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Iran to Increase Penalties for Unauthorized Cryptocurrency Mining

News Feed

Dogecoin Explodes 112% – Is $1 The New Target After This Historic Rally?
Este artículo también está disponible en español. Dogecoin (DOGE) has become one of the most popular cryptocurrencies after a 112% growth in the past week. DOGE leads ano
Gemini Forms Creditors Committee With Houlihan Lokey to Resolve Genesis Liquidity Issues
Gemini Forms Creditors Committee With Houlihan Lokey to Resolve Genesis Liquidity Issues Roughly two weeks ago a report from the Financial Times (FT) claimed Genesis Global Capital
Public blockchain ledgers ‘not fit for purpose,’ says JPMorgan exec
Zoltan Vardai9 hours agoPublic blockchain ledgers ‘not fit for purpose,’ says JPMorgan execDespite the criticism, TradFi institutions still prefer using public blockchains for real-world asset tokenization.1503 Total
$50 Billion in Cryptocurrency Left China Amid Escalating Trade Wars
$50 Billion in Cryptocurrency Left China Amid Escalating Trade WarsOver $50 billion in cryptocurrency flowed out of China over the past 12 months amid trade wars, a new study finds.
Digital Currency Group Suspends Dividends Amid Regulatory Trouble With Subsidiary Genesis
Digital Currency Group Suspends Dividends Amid Regulatory Trouble With Subsidiary Genesis According to a shareholders’ letter from Digital Currency Group (DCG) viewed by fina
‘The Unfair Advantage:’ Dune Actress Rebecca Ferguson Stars in Crypto-Centric TV Commercial
"The Unfair Advantage:" Dune Actress Rebecca Ferguson Stars in Crypto-Centric TV Commercial In recent times cryptocurrency platforms have been airing a number of commercials on tel
Derek Andersen3 hours agoLower-middle income countries lead in crypto adoption, but not volume: ChainalysisUsage is down, but the future of crypto looks bright thanks to adoption in up-and-coming economies, according to
Societe Generale Forge partners with Bitpanda for euro stablecoin ahead of MiCA
Zoltan Vardai11 hours agoSociete Generale Forge partners with Bitpanda for euro stablecoin ahead of MiCAThe partnership comes shortly ahead of the implementation of the MiCA regulatory framework for crypto service provid
Australia's securities regulator appeals loss in Finder Wallet case
Brayden Lindrea8 hours agoAustralia"s securities regulator appeals loss in Finder Wallet caseASIC argues a federal court judge “erred” in finding that Finder Earn was not a “debenture” — and thus compliant with
Popular Browsers Like Google Fail to Catch Copycat Crypto Sites, Scams Make the Top Results
Popular Browsers Like Google Fail to Catch Copycat Crypto Sites, Scams Make the Top Results As the digital asset economy grows popular and a number of crypto com
Jesse Coghlan21 hours agoFTX alleges former exec used ‘hush money’ to silence whistleblowersThe lawsuit claims that former compliance officer Daniel Friedberg paid whistleblowers to stop them from exposing the “tru
William Suberg8 hours ago‘Buy the rumor, sell the news’ — Bitcoin ETF may spark TradFi sell-offBitcoin retail investors may end up with a hot potato if the spot ETF go-ahead plays out like gold 20 years ago, analys