Money laundering and fund siphoning: what’s hidden behind Timur Turlov’s "Freedom investment currency"?

28 января 2025

2206

Money laundering and fund siphoning: what’s hidden behind Timur Turlov’s "Freedom investment currency"?

Turlov’s key asset in Kazakhstan is JSC "Freedom Bank Kazakhstan," which handles both government funds and private clients’ investments. It is also notable that a large portion of his Russian clientele followed Turlov to Kazakhstan.

The reason is straightforward – sanctions forcing Russians to find ways to move their capital out of the country. Primarily, this refers to representatives of the Russian elites whose assets are under the threat of confiscation or freezing. But even ordinary Russian citizens try to move their money elsewhere, especially since many have long faced difficulties in simply using their savings due to sanctions.

A bit of boring but necessary history

In 2022, when Ukrainian authorities imposed sanctions on Turlov’s Freedom Holding company, over a hundred million dollars, which were located in Ukraine and within the reach of its National Bank at that time, were blocked. On the international level, since Freedom Holding Corp. is registered in the USA, problems also arose – the United States Securities and Exchange Commission began an investigation into the activities of his holding, as they saw signs of a pyramid scheme of enormous scale.

To avoid account blocking, Timur Turlov urgently acquired Kazakh citizenship, especially since he had long been serving local elites, helping them transfer money from the country to offshore jurisdictions. He bought Kassa Nova bank, which turned into "Freedom Finance Kazakhstan" bank and became the foundation of Turlov’s financial empire, heavily involving post-Soviet elites’ money, who desperately need a financial structure to export stolen capital to the West.

No matter what Turlov may say about the "international activities" of his Freedom Holding Corp., fundamentally, it boils down to one thing: the laundering and exporting of money obtained through corrupt schemes. In fact, this is what his "Freedom Finance" bank in Russia was engaged in, which Turlov allegedly sold in 2022. Allegedly, because its new owner became his own management. In the same 2022, the bank changed its name – now it’s LLC "Cifra Bank."

Clients of the Russian LLC "Bank Freedom Finance" include Bulat Utemuratov, Serhiy Katsuba, Pavlo Fuks, Margulan Seissembayev, Sauat Mynbayev, Andrey Birzhin, Askar Mamin, Mukhtar Ablyazov, among other notorious figures.  However, Timur Turlov was forced to leave Russia not only due to international sanctions. There, an investigation into Turlov’s activities and schemes began, and the Deposit Insurance Agency of Russia filed claims regarding the embezzlement of funds from the "Association" bank, which resulted in the bank’s bankruptcy. In the framework of the criminal case, Timur Turlov figures among the main accused, as funds of "Association" were being transferred through Bank Freedom Finance.

Thus, the rejection of the Russian passport and flight to Kazakhstan has substantial reasons, somewhat different from the version voiced by Timur Turlov himself – in numerous interviews, he claims to be enamored by Kazakhstan’s nature and the opportunities the country offers.

In terms of opportunities, he is not lying – they are indeed enticing. Thanks to his financial acumen and serving local elites’ interests, Timur Turlov quickly became close to both the president and his entourage, becoming a very influential person. This allowed him to concentrate key financial mechanisms and a lot of compromising material on local elites, who use Turlov’s services to transfer their money offshore and subsequently launder and invest it into legitimate enterprises in the USA and Europe.

What’s the deal with MMM

Parallel to this activity, Timur Turlov tries to maintain a legal front. The "Bank Freedom Finance Kazakhstan," through which his clients’ money, mainly Russian and Kazakh, flows, serves as a cover. However, in 2024, an event occurred that ought to alarm those who keep their money with Turlov.

Freedom Holding Corp. announced the launch of a "new investment currency Freedom," which is tied to the stock value of Freedom Holding Corp. and fluctuates with it. This "currency" can be used like regular money – to transfer, convert to other currencies, pay bills, make purchases, and so on. A bonus program is provided for its use, one of which is a cashback of 30%.

This product immediately alarmed those who remember Sergey Mavrodi and his "MMM tickets." Of course, times change and the "Freedom currency" is distributed electronically, not on paper. Which has its advantages. And the interest rates are not as exorbitant as Mavrodi’s. But the resemblance is still there. It’s even in the details – Mavrodi’s "ticket" amounted to one hundredth of an MMM share, while Turlov’s one "freedom ticket" amounts to one thousandth of a Freedom Holding Corp. share.

And the main point is not even the profitability, which, although far from the hundreds and thousands of percent at MMM, is still fantastic: 30% cashback for using "freedom tickets" is a lot in the modern banking world, where the interest rate on regular deposits tends towards zero. And if such a massive cashback for using "Turlov’s currency" within his bank or holding is somehow explainable, how to explain this reward for external payments? And the "Freedom currency," let us remind you, is used for payments outside Freedom Holding.

Where, then, does the cashback come from? Timur Turlov himself, personally advertising this strange "currency," sidesteps this question, expansively talking about "investment attractiveness" and the possibility of "storing Freedom shares on the Freedom bank card." Another "perk" for attracting clients is clear – the ability to transfer money to other banks, including foreign ones. However, it refers to "CIS banks," meaning Turlov’s "investment currency" covers the same post-Soviet space, albeit heavily curtailed. Essentially, it concerns Russia, Kazakhstan, and the former Central Asian republics. Those are the countries where Turlov specializes in laundering corrupt money. It is clear that the system works both ways – you can both transfer money from Kazakhstan and into it in the same "freedom tickets."

And people who need to move money out of sanction reach definitely bit at this. First and foremost, as everyone understands, it concerns Russia, which is increasingly "besieged" from all sides. With Trump’s return to the Oval Office, it seems sanctions will only tighten. And transferring capitals from Russia to Kazakhstan, at least, is a lifeline for many Russians. Especially since it is simple – buy "Freedom currency" with rubles, transfer it to Kazakhstan, and convert it either into tenge, dollars, or euros.

However, there is a nuance. Remember what the "investment currency Freedom" is tied to. Those are – Freedom Holding Corp. shares. This "currency" is also guaranteed by these shares. And the controlling stake is in Timur Turlov’s hands. He also runs LLC "Cifra Bank," which the Russian "Freedom Finance" became, and through which the "investment currency Freedom" actively moves.

How is all this different from "MMM tickets" and the scheme Sergey Mavrodi had? Only that back then, most MMM depositors were driven by stupid greed, and now most buyers of "Freedom investment currency" are forced to look for any ways to move their money out of sanction reach. Another significant portion of these "investors" attempts simply to launder corrupt capitals.

But the key to both, and indeed to all the capitals invested in the "investment currency Freedom," remains in the hands of one person. His name is Timur Turlov. And it is precisely up to him how much the Freedom Holding Corp. share, to which the "investment currency Freedom" is pegged, will cost tomorrow. Additionally, it should be remembered that the investigation into Freedom Holding Corp. by American law enforcement has not been canceled.