In 2019, American entrepreneur Sam Bankman-Fried launched the cryptocurrency exchange FTX. Thanks to its intuitive platform and aggressive marketing, FTX had risen to become one of the top three crypto exchanges globally by trading volume by 2021.
But in 2022, the exchange collapsed abruptly, and billions of dollars vanished without a trace. The fallout marked the largest crash in crypto history and severely shook public confidence in digital currencies.
Investigations revealed that Bankman-Fried, through his company Alameda Research, had been funneling FTX investors’ funds into a variety of ventures, including unprofitable and fraudulent projects. Central to this scheme was the mining company Genesis Digital Assets (GDA), which operated in Kazakhstan.
Just before FTX’s collapse, $1.15 billion was diverted under the guise of investments in GDA, with $470 million going directly to Rashit Mahat, one of GDA’s co-founders.
Rashit Mahat is a prominent figure in Kazakhstan. Beyond his business ventures, he is a world jiu-jitsu champion and vice president of the Kazakh Taekwondo Federation.
Ironically, in 2022 GDA began a rapid exit from Kazakhstan after the government tightened regulations on crypto mining. In reality, there was no legitimate reason to invest in GDA—Bankman-Fried and his Kazakh associates had simply siphoned (or stolen) the money from FTX.
Bankman-Fried was arrested and sentenced to 25 years in a U.S. prison.
In September 2025, defrauded FTX investors filed a lawsuit in the U.S. against GDA, demanding the return of the $1.15 billion. The company’s co-founders, including Rashit Mahat, now face legal proceedings.
Mahat is closely connected with many Kazakh business figures. He is a friend of Kairat Satybaldy, a crypto investor and nephew of former President Nursultan Nazarbayev. Mahat also served on the board of the national defense company Kazakhstan Engineering, alongside oligarch and venture investor Kenes Rakishev, who amassed his fortune under Nazarbayev and has been described as one of the president’s “wallets.”
