Kazakhstan Investigates Alleged S-Group Financial Pyramid, Reports Over 136 Million Tenge in Losses

Kazakhstan's Agency for Financial Monitoring (AFM) has launched an investigation in Astana into the alleged organization and leadership of a financial pyramid operating under the name Sincere Systems Group LTD, also known as S-Group, the agency said in a statement.

According to the AFM, S-Group presented itself as a British investment fund offering trust management services in the Forex market, cryptocurrency mining, and trading in internal digital tokens known as SWP and SWCT. Investors were promised returns of 15% to 20% per month, or up to 180% annually.

"To create the appearance of real investment activity, participants were given access to personal online accounts displaying virtual deposits, accrued income, and 'growth in returns,'" the agency said. "In reality, the funds received from investors were not invested and were used by the suspects for personal purposes."

Authorities estimate that losses from the scheme have exceeded 136 million tenge. Investigators say the organizers used the proceeds to purchase two apartments in the capital and two vehicles, which were registered under third parties in an attempt to conceal ownership. A court has authorized the seizure of the assets.

Preventive measures, including travel restrictions and requirements for proper conduct, have been imposed on the suspects, and the investigation remains ongoing.

The AFM noted that the case forms part of broader efforts to combat financial crimes linked to digital assets. Since the beginning of 2024, Kazakhstan has registered 17 criminal cases related to illegal crypto mining, with total damages of 1.3 billion tenge. Authorities have also seized and confiscated digital assets worth approximately $642,000 in connection with those cases.