The Ministry of Internal Affairs of Russian Federation (MOI) has just announced that Russian policemen have arrested the suspect in the cryptocurrency pyramid scheme from Kazakhstan – which is bounded on the north by Russia.
The suspect is accused of creating crypto scam and building an “unreal” investment firm to defraud investors to spend their money.
It is reported by the MOI that there has been a series of 300 fraud activities that are involved with this pyramid scheme – an illegal activity in which each participant recruits two or more participants, with the promise of being returned with high payments. One investor among the victims has reported losing around 14 million Kazakhstan Tenge ($36,700) to the founder of this.
In early 2019, the founder of this crypto pyramid scheme quickly ran out from Kazakhstan and has been marked as internationally wanted by Interpol. When being arrested by Russian authorities, the alleged criminal then admitted how he can illegally pass the border by just using horse and sneaked into Russia.
At the current stage, the MOI has not revealed any further details towards the case nor the unnamed detainee.
Recently in May, ten Brazilian suspects were reportedly brought into custody with charges against running a cryptocurrency pyramid scheme worth 850 million reals ($210 million).