Kazakhstan’s Agency for Financial Monitoring (AFM) has seized 3.2 million USDT as part of its ongoing crackdown on illicit financial networks linked to the now-liquidated shadow crypto service known as RAKS Exchange.
According to a press release from the AFM, the enforcement action is the culmination of a broader investigation into the platform, which had evolved into one of the largest unlicensed crypto laundering conduits in the authorities described as one of the largest underground crypto services in the Commonwealth of Independent States (CIS) region. The exchange was purpose-built to launder criminal proceeds and facilitate fiat cash-outs for illicit digital assets.
$224 million in illicit transactions
RAKS Exchange operated without legitimate licenses or partnerships, serving almost exclusively as a financial lifeline for the dark web. Authorities revealed that the total transaction volume flowing through the platform exceeded $224 million.
The exchange was primarily used by criminal networks, including more than 200 distinct darknet drug marketplaces operating across Kazakhstan, Russia, Ukraine, and Moldova.
Large-scale blockchain investigation
The confiscation follows a large-scale crypto investigation conducted under a “follow the money” approach.
During the investigation, AFM analyzed over 4,000 crypto wallets linked to illegal drug trade and darknet platforms. This on-chain analysis led to the identification and freezing of more than 9.7 million USDT in digital assets.
At the current stage, authorities have successfully confiscated 3.2 million USDT after definitively proving the criminal origin of the funds in court. The seized digital assets have since been transferred to a special government-controlled account.
Officials said the operation has significantly disrupted the criminal infrastructure associated with narcotics distribution.
“As a result, the channel that posed a threat to the health of citizens was dismantled,” the agency stated, adding that large quantities of narcotics were destroyed and several online drug stores were forced to cease operations.
Combatting crypto-linked crime
The AFM emphasized that the takedown is part of its ongoing efforts to combat money laundering and the legalization of criminal income, particularly proceeds derived from drug trafficking and internet-based fraud.
Authorities indicated that investigations remain active as they continue to trace and recover illicit digital assets connected to organized criminal networks.
The case underscores the increasing role of blockchain analytics in identifying and dismantling illicit financial flows within the crypto ecosystem.
The bust also follows previous enforcement actions where Kazakhstan targeted unlicensed crypto platforms and seized $16.7M in assets. Investigators uncovered 81 underground networks that helped people to convert crypto into cash and handled more than 24 billion KZT (over $43 million).
Also read: US Crypto Crackdown Hits Iran: $500M Seized as Tehran Faces ‘Economic Crisis’
