Investors from Pakistan have fallen victim to massive fraud using cryptocurrencies. Media reports say the country’s main law enforcement agency has notified cryptocurrency exchange Binance about the scam, which cost Pakistanis $100 million.

Fraudsters lure Pakistanis to invest in cryptocurrencies via Binance

Federal Bureau of Investigation of Pakistan (son) uncovered a crypto investment scam that allegedly cost Pakistani citizens around 17.7 billion rupees (about $100 million). On Friday, Imran Riaz, head of the FIA’s cybercrime unit, provided details about the case, saying the organizers used cryptocurrencies. Local media quoted Riaz as saying:

We have launched an investigation after receiving complaints about fraud involving multi-billion rupees using nine online applications.

Fraudsters used a mobile app that offered Pakistani crypto investment opportunities, and people sent between $100 and $80,000, or an average of $2,000 per person. Investors are urged to register with Binance, the world’s leading cryptocurrency exchange, and transfer funds from Binance Wallet to an account linked to the app. Authorities were contacted by many users on Dec. 20, who complained that about a dozen apps had suddenly stopped working.

“During the investigation, it was discovered that fraudulent accounts of different applications, namely MCX, HFC, HTFOX, FXCOPY, OKMINI, BB001, AVG86C, BX66, 91fp, TASKTOK, were all associated with Binance Wallet,” the officials detailed. Each has an average of 5,000 customers. The FIA ??has issued a notice to Hamza Khan, identified as Binance’s Pakistan representative, and summoned him to appear in person in court on January 10.

“FIA Cybercrime Sindh has issued an order of attendance to Binance Pakistan (cryptocurrency exchange) general manager/growth analyst Hamza Khan explaining his stance on linking fraudulent online investment mobile apps to Binance,” the FIA ??said. Quotes reported by Express Tribune and other news outlets. “Relevant questionnaires have also been sent to Binance headquarters in the Cayman Islands and Binance USA to explain this,” the agency added in a press release.

Authorities keep a close eye on Pakistani crypto exchanges

The FIA ??claims to have identified 26 wallet addresses on Binance for transferring funds. “Binance Holdings Ltd. has been written to provide details of these blockchain wallet accounts and debited,” the agency said, adding that it also requested information on the app’s integration with token trading. Support documents and information platforms.

Noting that Binance is the “largest unregulated virtual currency exchange” where Pakistanis have invested millions of dollars, the FIA ??has warned that its cybercrime unit may recommend the State Bank of Pakistan (systolic blood pressure) impose financial penalties. It has now started to closely monitor transactions made by Pakistanis on the exchange.

Law enforcement officials are also reaching out to popular messaging app Telegram, as members of the scheme are added to various groups that signal bitcoin’s price volatility. The FIA ??is issuing legal notices to social media influencers who have been promoting the apps and taking steps to block all bank accounts linked to the scam.

In December, the FBI freeze Over 1,000 bank accounts and cards used by crypto traders from Pakistan. According to a notice issued by the SBP in April 2018, the country still prohibits the purchase and sale of cryptocurrencies.Despite the ban, a recent report disclose Pakistanis have invested $20 billion in crypto assets. incoming call The government has been stepping up efforts to regulate related party transactions.

Do you expect Pakistan to further restrict crypto investments and transactions after this fraud case? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tassev, a journalist from tech-savvy Eastern Europe, likes Hitchens’ famous quote: “Being a writer is who I am, not what I do.” Beyond crypto, blockchain and fintech, international politics and The economy is two other sources of inspiration.