Kazakhstan Uncovers Major Money-Outflow Scheme for Online Casinos
The Financial Monitoring Agency of Kazakhstan uncovered a scheme involving the withdrawal of $1.2 billion for four online casinos.
Use of Grey POS Terminals and Fake Contracts
According to the Agency, the owners of fintech services used grey POS terminals and Terminal IDs obtained through fake contracts with betting companies. This allowed them to process transactions while disguising them as legitimate payments.
The scheme handled massive sums: the confirmed volume of illegal transfers exceeds 600 billion tenge, and the total withdrawal of funds for the four online casinos is estimated at $1.2 billion.
More than 20 payment organizations and employees of second-tier banks were involved in the illegal activity. These companies facilitated transactions routed to online casinos, which are banned in Kazakhstan.
Ban on Online Casinos and User Involvement
The Agency emphasizes that online casino operations are completely prohibited in Kazakhstan. Such platforms do not pay taxes, do not verify users, actively attract young people, and pose risks to mental well-being.
Despite the ban, organizers maintained steady financial flows by exploiting weak oversight in several payment structures and using tools designed to bypass regulations.
Shutdown of the Call Center and Affiliate Program
The Agency dismantled a large call center with 120 employees providing technical support for four online casino brands and offering guidance on financial transactions. Staff members included citizens of Kazakhstan, Russia, Belarus, Spain, and Vietnam.
The organizers also created an affiliate program for receiving and withdrawing cryptocurrency. Its turnover exceeded 200 million USDT, highlighting the scale of the illegal financial operations.
Searches, Arrests, and International Warrants
More than 70 searches were conducted, resulting in the seizure of material evidence. Nine individuals have already been taken into custody, including an adviser to the head of the “Association of Payment Organizations.”
Authorities are preparing materials to place eight more suspects — including foreign nationals — on the international wanted list. Their involvement relates to mediating transactions, overseeing money flows, and providing technical support.
Use of the PIN-UP.KZ Brand and Company Response
Although the names of the operators have not been officially disclosed, footage released by the Agency shows signage and merchandise from PIN-UP.KZ. The company issued a statement claiming it has no connection to the operations and did not enter into agreements with the payment organizations involved.
According to the brand’s representative, the payment firms used the PIN-UP.KZ logo and corporate details without authorization to set up terminals. The company has submitted inquiries to banks and the National Bank, filed lawsuits to protect its business reputation, and reported alleged fraud to the police.
The operator stresses that it operates legally under the Ministry of Sports license No. 21031283 dated November 8, 2021, and considers itself a victim in the case.