Authorities in Kazakhstan have dismantled two cross-border groups involved in processing payments for unnamed iGaming operators using an extensive dropper network. According to the country's Financial Monitoring Agency, the combined turnover of these networks exceeded 10.3 billion tenge (approximately $21.7 million).
Details of the Illegal Payment Scheme
The groups reportedly registered incoming citizens from Uzbekistan and Kyrgyzstan, including minors, within Kazakhstan's banking system. Organisers then handed over smartphones with access to these accounts to supervisors, enabling them to control and move funds. Player deposits and winnings were handled automatically through specialized software designed for peer-to-peer (P2P) transfers. Some settlements between network participants were conducted using cryptocurrency.
Seizures and Detentions
During the raids, authorities confiscated 180 bank cards, 35 mobile phones, $50,000 in cash, 27,000 USDT (a stablecoin), four vehicles, as well as firearms and ammunition. Five suspects have been detained by court order as investigations continue.
Implications for the iGaming Industry
This development highlights ongoing efforts by regulators in Kazakhstan to combat illegal financial flows linked to the iGaming sector. For operators, affiliates, and payment suppliers, the crackdown underscores the importance of compliance with local regulations and vigilance regarding payment channels. The use of P2P software and cryptocurrency in these schemes may prompt further scrutiny of alternative payment methods in the region.
Key takeaways
- Kazakhstan disrupted two cross-border iGaming payment networks with over $21 million in turnover.
- Networks used dropper accounts, P2P software, and cryptocurrency for transactions.
- Authorities seized cash, crypto, bank cards, vehicles, and weapons during raids.
- Five suspects have been detained as part of the ongoing investigation.