Kazakhstan Freezes $9.7m USDT From Cis Darknet Laundering Service, Bans Htx Bitget Okx And Mexc

Kazakhstan Dismantles Major CIS Crypto Laundering Network

Kazakhstan's Financial Monitoring Agency (AFM) has frozen 9.7 million $USDT and confiscated a further 3.2 million $USDT from what authorities describe as one of the largest shadow crypto services in the Commonwealth of Independent States (CIS). As a result of the investigation, 9.7 million USDT worth of digital assets were frozen and about 3.2 million USDT were confiscated, with the agency adding that large drug shipments were disrupted, distribution infrastructure was destroyed, and a number of drug stores were shut down.

The AFM completed its investigation into RAKS, a cryptocurrency exchange that laundered funds for vendors on the dark web for years. The entity, described as the largest of its kind in the CIS, was mainly active in Russia, Ukraine, and Moldova. The platform collaborated with 20 of the largest darknet markets, with a total of over 5 million users, and over three years laundered the criminal proceeds of more than 200 drug shops in the CIS countries, with total turnover exceeding $224 million.

During its probe, the AFM analyzed over 4,000 cryptocurrency wallets and found a number of accounts holding criminal proceeds. The RAKS exchange has since been discontinued — social media accounts deleted, support suspended, and darknet forums record widespread complaints from drug traffickers about the loss of access to funds.

The takedown is part of a sustained enforcement drive. Kazakhstan shut 130 platforms in a separate October 2025 enforcement wave, seizing $16.7 million in assets.

HTX, Bitget, OKX, and MEXC Declared Illegal

In a parallel development, Kazakhstan formally classified four major international exchanges as illegal. A number of unlicensed crypto platforms that advertise and promote their services in Kazakhstan — including HTX, Bitget, OKX, and MEXC — were named in a regulator press release, which warned that only entities licensed by the AFSA are legally authorized to conduct regulated activities in or from the AIFC.

A major shift occurred with the 2023 Law on Digital Assets, which mandated licensing for miners and confined most crypto trading to the AIFC. Under Kazakhstan's current legislation, such licenses are issued within the legal regime governing the Astana International Financial Centre, which hosts the country's authorized cryptocurrency exchanges. The regulator warned that using unlicensed platforms exposes users to risks including loss of investment, data leaks, and potential involvement in fraud.

The enforcement actions reflect a broader strategic posture. By 2025, around 95% of digital asset turnover — worth more than €13 billion — was still taking place outside the legal system, according to the chair of Kazakhstan's National Blockchain Association. Authorities are pushing to redirect that activity into a regulated framework, with trading on AIFC-licensed platforms reaching $6.8 billion from January to September 2025, with the AIFC currently hosting 27 licensed crypto firms, including 12 authorized exchanges.

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