Pakistanis Lose Millions to Crypto Scam, Pakistan Issues Notice to Binance – Bitcoin News

Investors from Pakistan have become victims of a large-scale scam using cryptocurrency. The country’s main law enforcement agency has issued a notice to crypto exchange Binance in connection with a scam that resulted in the loss of $100 million to Pakistanis, media reports revealed.

Scammers lure Pakistanis to invest in cryptocurrency with Binance

Pakistan’s Federal Investigation Agency (FIA) has uncovered a cryptocurrency investment scam that allegedly cost Pakistani citizens about 17.7 billion rupees (about $100 million). Giving details of the case, Imran Riad, director of the FIA’s cybercrime wing, said on Friday that the regulators had used cryptocurrency. Local media quoted Riyad as saying:

We launched an investigation after receiving complaints about a scam involving billions of rupees perpetrated using nine online apps.

Scammers used mobile apps offering Pakistanis crypto investment opportunities, sending people between $100 and $80,000, or an average of $2,000 per person. Investors are urged to register on Binance, the world’s leading cryptocurrency exchange, and transfer funds from Binance Wallet to accounts linked to the apps. On December 20, authorities were contacted by several users who complained that about 12 apps suddenly stopped working.

“During the investigation, it was found that the fraudulent accounts of various applications, namely MCX, HFC, HTFOX, FXCOPY, OKMINI, BB001, AVG86C, BX66, 91 fp and TASKTOK, were linked to Binance wallets,” the officials explained. Each had an average of 5,000 customers. The FIA ​​issued a notice to Hamzah Khan, identified as Binance’s representative in Pakistan, summoning him to appear in person on January 10.

“FIA Cyber ​​Crime Sindh has issued a summons to Hamza Khan, General Manager/Growth Analyst at Binance Pakistan (Crypto Currency Exchange) to explain his position regarding the linking of fraudulent online investment mobile applications with Binance,” the FIA ​​said. By Express Tribune and other news outlets. “A related questionnaire has also been sent to the Binance headquarters in the Cayman Islands and to Binance US to explain the same,” the agency added in a press release.

Authorities should keep a close eye on Pakistani crypto transactions

The FIA ​​claims to have identified 26 Binance wallet addresses that are used to transfer funds. “A letter has been written to Binance Holdings Limited to provide details of these blockchain wallet accounts as well as block deductions from them,” the agency said, adding that it also requested supporting documentation and information about the app’s integration with crypto trading. a program.

Noting that Binance is the “largest unregulated virtual currency exchange” where Pakistanis have invested millions of dollars, the FIA ​​warns that in case of non-compliance, its cybercrime unit could recommend the State Bank of Pakistan (SBP) to impose financial penalties. It has now begun to closely monitor the transactions of Pakistanis in the stock exchange.

Law enforcement officials are also reaching out to popular messaging app Telegram where members of the scheme have been added to various groups that are posting signals about bitcoin’s price fluctuations. The FIA ​​provides legal notices to social media influencers who promote apps and takes steps to ban all bank accounts linked to the scam.

In December, the FBI froze more than 1,000 bank accounts and cards used by cryptocurrency traders from Pakistan. The buying and selling of cryptocurrencies is still prohibited in the country as per the circular issued by SBP in April 2018. Despite the ban, a recent report revealed that Pakistanis have invested $20 billion in crypto assets. There have been calls for the government to regulate related transactions.

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Accounts, Addresses, Binance, Crypto, Crypto Assets, Cryptocurrency Exchange, Cryptocurrency, Cryptocurrency, Exchange, FBI, FIA, Fraud, Fraudsters, Investigation, Investment Scheme, Investors, Pakistan, Pakistani, Pakistani, Investigation, Regulations, Regulations , wallet fraud

Do you expect Pakistan to impose more restrictions on crypto investments and trading after this fraud case? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tasev is an Eastern European technologist who likes to quote Hitchens: “Being a writer is what I am now, not what I do.” Besides crypto, blockchain and fintech, international politics and economics are other sources of inspiration.

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