Kazakhstan Crypto Mining Hotel Probed Due To Ponzi Scheme

Ozioma Sani 10/08/2022 Crypto Crime News, Cryptocurrency News Leave a comment 113 Views

A Kazakhstan crypto mining hotel has faced a probe recently as it is suspected of being involved in Ponzi scheme activities. It is considered as one of the serious crypto-related crimes that any organization may choose to undertake. This is why the nation’s authorities decided to investigate the matter to get clarity on the situation.

FMA Probes Into A Kazakhstan Crypto Mining Hotel

The Financial Monitoring Agency of Kazakhstan (FMA) has been making several efforts to check on the crypto frauds or scams that might be existing in oblivion. The agency, therefore, initiated a probe into a crypto mining hotel based in Kazakhstan accusing it of operating on a Ponzi scheme, or a financial pyramid method. The FMA announced that the investigation has been led by the watchdog’s department, which is situated in the West Kazakhstan region.

The insiders of Bincloud, the Kazakhstan crypto mining hotel we are talking about, had been acquiring investors through social media platforms like WhatsApp and Telegram. They convinced these crypto enthusiasts to put monetary funds into their crypto mining business by promising them to offer about 5% to 6% of daily return on their investments.

A government press release noted that this crypto mining hotel’s business operators were holding about 16% of the investors’ funds. This was done through a financial pyramid scheme, where the funds from newer investors were rotated to the older ones while keeping a share for Bincloud itself. These illegal operations led to about $0.5 million in monthly income for the company, which is fairly huge. If such crypto crimes are not regulated immediately, it would further wipe off funds from innocent investors.

The crypto miners have seen a significant change in their operations due to the nation’s spree of tracking crypto scams. Moreover, the crypto mining companies were facing frequent power cuts in the cold winter months while the FMA decided to investigate them for checking on malpractices if any.

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