How a fake Warner Bros pyramid scheme conned victims in Kazakhstan
The head of the local branch of the WarnerBros. Ponzi scheme has been sentenced to five years in prison in Kyzylorda, Kazakhstan. Participants were promised earnings for watching videos and films. The court also confiscated 3 million USDT, a stablecoin pegged to the U.S. dollar, from the convicted woman, according to Kazakhstan’s Financial Monitoring Agency (FMA).
Additionally, the civil claims of 24 victims were fully satisfied as part of the criminal proceedings. The verdict has entered into force.
How the scheme worked
The scheme’s organizers told Kazakhstanis they could earn money by watching short videos and films through a mobile app.
«Participants were asked to register on the platform using a referral link and purchase one of the VIP packages, priced from 10,000 tenge to 11 million tenge [about $22,500], with a promised daily return of up to 735,000 tenge [about $1,500],» the FMA said.
Recruitment through referrals
The pyramid scheme expanded rapidly because participants received bonuses for recruiting new members. To promote the project, the organizers used WhatsApp groups, social media advertising and in-person meetings to attract new participants.
Read also: The new ‘Mecca Ponzi’ scheme targeting devout pilgrims.
During the investigation, FMA officers identified the cryptocurrency wallets through which investors’ funds were transferred. A court ordered the seizure of assets held in those wallets.
Previous conviction
This is not the first conviction linked to the WarnerBros. case. Kursiv.media previously reported that another organizer of the financial pyramid scheme was also sentenced to five years in prison.
