Russian Police Arrest Alleged Creator of Large Crypto Pyramid Scheme From Kazakhstan

Published at: May 29, 2019

Police in Russia have arrested an alleged creator of a crypto pyramid scheme from Kazakhstan who was facing an international arrest warrant, Russia’s Ministry of Internal Affairs (MOI) officially reported on May 28.

The unnamed detainee is reportedly accused of defrauding investors using a scam crypto scheme promising high returns from crypto investments, involving a group of criminals.

The MOI reported at least 300 fraud cases allegedly connected with the pyramid scheme, with one of the investors having reportedly lost around 14 million Kazakhstan tenge ($36,700) to the criminals.

According to the report, the intruder fled Kazakhstan in early 2019 and has since been declared wanted by Interpol. After being arrested by Russian police, the alleged criminal confessed that he illegally crossed the border into Russia on horseback.

At the moment, the authorities are resolving the question of criminal extradition to Kazakhstan, the MOI reported.

Recently, Cointelegraph reported that the United States Securities and Exchange Commission initiated court proceedings against a California resident for the alleged operation of a multimillion-dollar cryptocurrency pyramid scheme.

Earlier in May, Brazilian police arrested ten people suspected of operating a cryptocurrency pyramid scheme worth $210 million.

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