Kazakh Authorities Arrest 23 Suspected of Forcing IT Professional to Run an Illegal Crypto Mine: Report

The country is still grappling with the illegal crypto mining industry.

AccessTimeIconAug 9, 2022 at 10:43 a.m. UTC
Updated May 11, 2023 at 4:58 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Authorities in Kazakhstan arrested 23 people suspected of forcing an IT professional to run an illegal crypto mine, according to a report on an information platform supervised by the Ministry of the Interior.

  • During searches of illegal mining farms, the Ministry of Internal Affairs and Kazakhstan's national security service found seven people thought to be members of the gang and a 36-year-old IT professional who was forced to organize the work of the mining farms, the report said.
  • Kazakhstan has been trying to root out illicit crypto mining, which draws a lot of electricity from its crumbling grid, while coming up with regulations and taxation to organize the legal industry.
  • Another three suspected gang members were arrested as authorities searched for illegally stored weapons, the report said.
  • The group was made up of former convicts and "criminally oriented persons" with a history of violent crimes, including debt collection and extortion, according to the report.
  • It was making $300,000-$500,000 a month from illicit crypto mining in the Talgar district of the Almaty region, the report said.
  • Authorities also seized 6,000 items of crypto mining equipment, worth about $7 million, along with an AK-47 assault rifle, ammunition and pistols.

UPDATE (Aug. 9, 2022, 11:13 UTC): Adds "Report" at end of headline.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Eliza Gkritsi

Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.