Scooters electric, cryptocurrency, and BMW: Unveiling the workings of HRT's pyramid scheme in the Kyzylorda region
In the Kyzylorda region, authorities have effectively dismantled a financial pyramid scheme known as HRT, according to reports by Liter.kz. The organizers of this scheme lured citizens into an allegedly legitimate investment project, entailing the acquisition of electric scooters and subsequent profits from their hire in European nations.
The deceptive scheme requested cryptocurrency transfers from online exchanges to a unique HRT account, with the condition that at least two new investors be attracted. A total of more than 200 individuals invested amounts ranging from $50 to $35,000, anticipating returns of up to $1,200 monthly. The total illicit income derived exceeded 28 million tenge, the report indicates.
Investigators revealed that the suspects employed the funds to purchase two luxury vehicles, a BMW 530I Xdrive and a Changan Alsvin, which have been seized via court order. The suspects now face house arrest.
Additionally, investigations are ongoing to uncover HRT's structural components in seven regions across the country—Aktobe, Almaty, Atyrau, Zhambyl regions, as well as in Nur-Sultan and Almaty.
Similar illicit activities involving cryptocurrencies have stirred concerns in Kazakhstan, as the unregulated digital asset market offers fertile ground for unlawful activities. In 2023, nearly 92% of the country's $4.1 billion crypto turnover took place outside official channels, according to recent data.
Authorities have taken decisive action, closing down 36 illegal cryptocurrency exchanges and halting two significant Ponzi schemes in 2024, while freezing $4.8 million in assets in the process. The consequences for those involved in such operations can be severe, with potential asset freezes, business closures, and criminal charges.
Victims of such schemes, however, often face difficulties in recovering losses due to the absence of legal protection. The unregulated nature of these activities often leads to tax evasion, money laundering, and economic harm.
Business investigations have exposed links of the dismantled HRT financial pyramid scheme to several regions across Kazakhstan, including Aktobe, Almaty, Atyrau, Zhambyl, Nur-Sultan, and Almaty. Finance-related crimes involving cryptocurrencies have sparked general-news concerns in Kazakhstan, with an unregulated digital asset market offering opportunities for illicit activities such as Ponzi schemes.
