The Interdistrict Criminal Court of Astana convicted two residents of the capital for illegal entrepreneurial activity, without a licence and registration with the AIFC (Astana International Financial Centre).
As explained by the court, the fraudsters, acting on a prior conspiracy, illegally engaged in the exchange of USDT on the Binance platform for two years and earned more than 7 billion tenge.
As a result, they were found guilty under Article 214, Part 2, Paragraph 2 of the Criminal Code of the Republic of Kazakhstan for 'Illegal Entrepreneurship'. One of them was sentenced to 3 years in prison. The second defendant received 2.5 years in prison.
Additionally, they were banned from engaging in activities related to the circulation of unbacked digital assets for a period of 7 years.
Disagreeing with the verdict, the convicted individuals and their lawyers appealed it and requested an acquittal. However, the decision was upheld and has entered into legal force.
For context, in October 2022, the Financial Monitoring Agency signed a memorandum of cooperation with the international cryptocurrency exchange 'Binance'. This was intended to establish procedures for blocking, seizing and confiscating criminal crypto assets for the benefit of the Republic of Kazakhstan.