How Kazakhstanis lost fortune in an African diamond mining scam

Investors in the Sax Invest pyramid scheme were scammed out of $18 million after being promised lucrative returns from securities trading and diamond mining operations in Angola.

Kazakhstan’s Agency for Regulation and Development of the Financial Market (ARDFM) has launched an investigation into the scheme, which defrauded more than 3,000 investors between 2018 and 2022.

«The company was presented as an investment fund. However, the promised monthly dividends of 2% to 3% were only paid to participants by pulling in funds from new depositors,» said the ARDFM. «Investors were encouraged to hand over their money, under the guise that it would be used for brokerage services, securities trading and diamond mining in the Republic of Angola.»

To join Sax Invest, individuals had to receive an invitation through a link and participants were encouraged to recruit friends and acquaintances into the scheme.

«Bonuses increased based on attracting new depositors. Allegedly, investors could cash out these bonuses by transferring funds to another person within the company’s system. However, all deposited money was transferred directly to the mastermind’s bank account, not to the company’s official account,» the ARDFM stated.

Authorities have detained one of the suspects involved in the pyramid scheme.

«The pre-trial investigation is ongoing. This year, 35 individuals have been sentenced to two to six years in prison, with property confiscation, for organizing and promoting financial pyramids,» the agency added.

A list of projects suspected for being financial pyramids is available through the ARDFM website.