Kazakhstan cracks down on $38M illegal lending and money-laundering ring
Sergey Koynov and four alleged accomplices face charges for running an illegal lending and money-laundering operation in Kazakhstan. Authorities claim the group issued high-interest loans through unlicensed outlets while disguising profits through sham contracts and inflated payouts. Assets worth $18 million, including luxury cars and properties, have now been frozen as the investigation continues.
The scheme centred on a licensed pawnshop, Active Lombard, alongside several unregistered firms operating under the Active Market brand. Though no official companies matched that name, investigators found over 1.9 million loan contracts tied to the network. Borrowers were charged daily fees of 1.73% to 2.07%—far above Kazakhstan's legal lending limits.
Prosecutors allege the group laundered funds by moving money between accounts, creating fake contracts, and distributing nearly $11 million in dividends. One firm, Zeus Co—officially an IT business—received $5 million under inflated software contracts, with most funds later paid to Koynov as dividends. The total suspected criminal income exceeds $38 million.
Koynov remains in pretrial detention, while his four alleged accomplices face travel restrictions. Authorities have seized properties, vehicles, and other assets linked to the operation.
The case highlights how the group exploited a licensed pawnshop to mask unregulated lending and money laundering. With $18 million in assets frozen and multiple suspects under restrictions, the investigation is ongoing. If convicted, Koynov and his associates could face severe penalties under Kazakhstan's financial crime laws.
