Prosecutor General's Office uncovers $50.5 million illicit crypto scheme linked to drug trafficking

The Prosecutor General's Office has revealed an illegal cryptocurrency operation valued at $50.5 million, which is connected to drug trafficking.

Investigators from the agency's department uncovered a network that utilized Telegram bots, bank cards registered to third parties, payment services, and crypto assets. These tools were employed to launder money generated from the illicit sale of narcotics and psychotropic substances.

The investigation suggests that officials from three companies—HST, VEK, and RBMT—along with other individuals, orchestrated a plan to legalize funds acquired through the illegal drug trade.

According to investigators, narcotic drugs and psychotropic substances worth UZS 20.9 billion were sold via 58 Telegram bots managed by an international group known as TESLA SHOP.

The investigation indicates that the proceeds were deposited into 90 bank cards, opened at Uzbek banks under the names of 14 foreign nationals. From this sum, UZS 8 billion was transferred to HST and VEK, companies operating in the Paynet payment services sector. Additionally, UZS 4.7 billion was sent to the cryptocurrency platform CP.

Subsequently, these funds were moved to the companies' settlement accounts and used to provide Paynet services to the public, amounting to UZS 621.2 billion. Investigators contend that this scheme allowed the suspects to evade UZS 90.3 billion in taxes.

The Prosecutor General's Office further stated that the illegally obtained funds were used for unauthorized cryptocurrency transactions totaling $50.5 million. Of this amount, crypto assets worth $2.4 million were reportedly transferred to the foreign currency accounts of 14 foreign nationals, an action investigators have categorized as money laundering.

A criminal case has been initiated under the pertinent articles of Uzbekistan's Criminal Code, and the investigation is still in progress.