Kazakhstan Dismantles Crypto Exchange Linked to $224 Million Money Laundering Operation

A Kazakhstan agency announced on Sept. 29 the dismantling of a major crypto exchange involved in laundering over $224 million from drug trafficking and internet fraud.

High-Profile Service and Darknet Links

Kazakhstan’s Financial Monitoring Agency (FMA) announced on Sept. 29 that it had completely dismantled a major crypto exchange service that laundered over $224 million in criminal proceeds from drug trafficking and internet fraud. The operation resulted in the freezing of digital assets worth 9.7 million USDT.

According to an announcement shared via Telegram, the dismantled service, identified through continuous blockchain transaction monitoring, had earned a high reputation within the criminal underworld. The exchange platform, which has been identified as RAKS cryptocurrency exchange by some media outlets, reportedly collaborated with 20 of the largest darknet markets that collectively served an audience of over 5 million users.

The announcement added that over the past three years, the crypto exchange was instrumental in laundering funds for more than 200 drug shops operating across (Commonwealth of Independent States) CIS countries, including Kazakhstan, Russia, Ukraine, and Moldova.

The complex crypto-investigation involved the analysis of over 4,000 cryptocurrency wallets. Investigators successfully identified the specific aggregator wallets used to store and consolidate the illicit funds. Ultimately, the FMA successfully blocked a total of 67 crypto wallets belonging to the service. The ensuing asset freeze secured digital assets worth nearly $10 million, dealing a major financial blow to the organization.

The FMA stated the exchange’s social media accounts had been deleted and its client support operations suspended. The agency also disclosed that its current focus is to actively work to expose and apprehend the organizers of the defunct crypto service.

“Active work is underway to expose the organizers of the crypto service. The measures taken have dealt a tangible economic blow to the shadow infrastructure of the drug business, destabilizing supply logistics chains, reducing the turnover of drug markets and undermining consumer confidence in illegal platforms,” the agency said.