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Pakistan to investigate Binance for multi-million dollar crypto scam

The federal agency of Pakistan started a criminal investigation after receiving numerous complaints against an ongoing scam that involved misleading investors into sending funds from wallets to unknown third-party wallets.

Pakistan‘s Federal Investigation Agency (FIA) reportedly issued a formal notice to crypto exchange in an effort to identify links around a multi-million crypto scam in the region. 

The government of Pakistan started a criminal investigation after receiving numerous complaints against an ongoing scam that involved misleading investors into sending funds from wallets to unknown third-party wallets. -in-multi-million-dollar-scam” target=”_blank” rel=”noopener nofollow”>According to local coverage, the FIA’s Cyber Crime Wing has issued an order of attendance to Pakistan’s general manager Hamza Khan to identify the exchange’s link to “fraudulent online investment mobile applications.”

“A relevant questionnaire has also been sent to Headquarters Cayman Islands and US to explain the same,” read the notice. The investment frauds in Pakistan were carried out by asking users to register on and transfer funds to third-party wallets under the pretext of unrealistic returns. According to the FIA notice:

“These schemes benefit old clients at the cost of new clients and ultimately disappear when they have made substantial capital base worth billions of rupees.”

Based on the complaints raised by citizens, the Pakistani agency identified at least 11 fraudulent mobile apps that suddenly stopped working after successfully stealing the user’s funds. The apps identified by FIA are MCX, HFC, HTFOX, FXCOPY, OKIMINI, BB001, AVG86C, BX66, UG, TASKTOK and 91fp.

In addition to directing users to sign up on to transfer the funds, the fraudsters added the victims on a Telegram group for providing “expert betting signals.” Each application hosted around 5,000 customers on average. The notice added:

“At least 26 suspect blockchain wallet addresses ( wallet address) have been identified where fraudulent amount may have been transferred. A letter has been written to Holdings Limited to give the details of these blockchain wallet accounts as well as to debit block them.”

has also been asked for details including official supporting documents and integration mechanism of the APIs that were used by the fraudsters to connect with ’s services. While the FIA has proactively blocked the bank accounts that were linked to the suspicious apps, the notice warned:

“In case of non-compliance, FIA Cyber Crime will be justified to recommend financial penalties on through the State Bank of Pakistan.”

has not yet responded to Cointelegraph’s request for comment.

Related: Pakistanis have $20B in crypto assets, says head of local association

In December 2021, the president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Nasir Hayat Magoon revealed that Pakistani citizens hold a combined crypto assets value of $20 billion.

As Cointelegraph reported, the FPCCI president confirmed the numbers based on a research paper released by the chamber. Supporting the claim, the 2021 Chainalysis Global Crypto Adoption Index ranked Pakistan the third highest in terms of index score behind Vietnam and India.

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