Uzbek crypto entrepreneur sentenced to 2 years in prison in the UAE for operating an unlicensed crypto exchange

Foresight News reported, citing Bits media, that Uzbekistani crypto entrepreneur Arut Nazaryan has been sentenced to two years in prison in the UAE for operating his crypto exchange Bistox without a license. The court also imposed a fine of 200 million dirhams (approximately 368.6 million yuan), an amount equivalent to Bistox’s total trading volume. Upon release, Nazaryan will not be allowed to leave the UAE until the fine is paid in full. He had previously been detained for five months, and prosecutors had sought a six-year prison sentence.

Nazaryan moved from Uzbekistan to Dubai 12 years ago, where he founded the investment fund Morningstar Ventures and the crypto exchange Bistox, and issued the BSX token. In 2021, Bistox was embroiled in controversy after users were unable to withdraw funds, and the platform was accused of fraud due to lack of registration information. In 2022, Nazaryan declared bankruptcy and closed Bistox, later admitting in a video that he had faked a wealthy image to maintain a “billionaire” persona. Nazaryan is currently selling property and vehicles to repay debts.