Kazakhstan launches an investigation into the mining company Bincloud suspected of organizing a Ponzi scheme. – Latest News

Recently, Kazakh authorities launched an investigation into a mining hotel involved in a cryptocurrency pyramid. The platform called Bincloud attracted investors through the popular messaging app. Its founders kept 16% of the investors’ funds for themselves.

Bincloud facing an investigation by the Kazakh authorities

As part of a broader effort to combat cryptocurrency fraud, Kazakhstan’s financial regulator has launched an investigation. This is a preliminary investigation against a cryptocurrency mining company allegedly operating as a pyramid in the financial system. Russian crypto media quoted the FMA as saying it was led by regulators from the western region of Kazakhstan.

The people behind the mining hotel Bincloud recruit investors through WhatsApp and Telegram Messenger, persuading them to put their money into projects offering rental of mining equipment. As a reward, they are promised to get back 5-6% of the amount invested every day.

Fraudsters withheld 16% revenue from hotel users, details the press release. Kazakhstan’s financial watchdog urges victims of alleged fraud schemes Ponzi to contact the regional branch of the financial watchdog and report their case.

Investigation Bincloud is part of the government crackdown on cryptocurrency crime. Kazakh police recently busted a gang whose members allegedly forced computer experts to run underground cryptocurrency farms on their behalf.

Illegal mining earns around $500,000 a month for its organizers. The media suggested that, like other similar ventures, it was impossible for a criminal group to operate unprotected or unconnected to a senior official or businessman.

See more: CME Group to launch Euro-backed Bitcoin and Ether futures in August.

Is the country no longer considered a mining center?

In May 2021, Kazakhstan became a magnet for crypto mining companies. This is due to the artificially low electricity tariffs in the country. However, things have changed since when and some companies have moved their equipment to other hotspots mining.

While the President’s government Kassym Jomart Tokayev has expressed a desire to grow the country’s crypto industry, a growing energy deficit due to an influx of miners has affected its policies in the industry, as it has also begun to crack down on illegal mining.

In February, an official pointed out that the government was not opposed to crypto mining. Nevertheless, he insisted that all mining facilities be identified and inspected by the FMA. The order came as mining companies faced power cuts during the cold winter months.

In July, Tokayev signed a law that increased the tax burden for registered mining entities. The legislation introduced differentiated tax rates based on the average price of electricity consumed to mint digital coins, increasing the surcharge applied at the start of the year.

Bonus: Iran facilitates its first import of goods worth $10 million in cryptocurrency.