Law enforcement authorities in the Bukhara region of the Republic of Uzbekistan have arrested a resident of Andijan and charged him with conducting illegal cryptoasset transactions totaling more than 18 billion soms, exceeding $1.3 million at current exchange rates. Uzbekistan has strict cryptocurrency regulations: officially, citizens trading on foreign platforms without a local license, such as Binance, Bitget, and other global exchanges, are considered lawbreakers.
According to the Ministry of Internal Affairs, from April 20 to September 30, 2025, the suspect executed 2,400 trades on these platforms. The total volume of operations amounted to 1,373,824 USDT. During the investigation, it was revealed that part of the funds, about 1 billion soms, passed through third-party bank cards, which allowed the “masking” of transaction origins. Another 757 million soms were deposited into bank accounts controlled by the suspect, after which all the funds were transferred to external crypto wallets and converted into digital assets. The fate of the remaining funds has not yet been specified by the authorities.
During a search, the suspect’s mobile phone was seized. Investigators found about 15 crypto addresses and the Binance app installed on the smartphone. All trading operations were carried out through an account registered in the name of the arrested individual, the Ministry of Internal Affairs emphasized.
A criminal case has been opened against the man under paragraph “a” of part 3 of Article 278‑8 of the Criminal Code of the Republic of Uzbekistan — “Violation of legislation in the field of cryptoasset circulation in especially large amounts.” The maximum penalty under this article is imprisonment for up to five years.
It is worth noting that the suspect already has a prior conviction for illegal crypto operations: in August 2025, he was convicted for similar transactions totaling 26 billion soms. At that time, the court found him guilty and imposed a restriction of liberty. Currently, the accused is again under investigation, which could lead to a stricter sentence.
Uzbekistan’s regulatory framework allows legal cryptocurrency operations only on exchanges officially authorized by the state. Any trading on unregistered foreign platforms is considered a violation of the law. Depending on the circumstances, violators may face both administrative and criminal liability, including imprisonment.
The case of the Andijan resident highlights the growing tension in cryptocurrency regulation in Central Asia. The country is actively developing its domestic digital asset ecosystem and seeks to control capital flows to prevent fund outflows and minimize risks to the financial system. At the same time, this case underscores that large foreign platforms, even well-known ones such as Binance and Bitget, remain outside national regulation, and trading through them can have serious consequences for investors.
All content provided on this website (https://wildinwest.com/) -including attachments, links, or referenced materials — is for informative and entertainment purposes only and should not be considered as financial advice. Third-party materials remain the property of their respective owners.