After a massive regulatory pressure on the biggest crypto exchange platform Binance, the Federal Investigation Agency (FIA) of Pakistan is said to have filed an official warning to the exchange in an effort to trace the origins of a multi-million dollar crypto fraud in the country.
After receiving many complaints about an ongoing scam that involves investors being tricked into transmitting funds from Binance wallets to unknown third-party wallets, the Pakistani government launched a criminal inquiry.
As per the local reports, the Cyber Crime Division of FIA has signed an order of attendance to Binance Pakistan’s general manager Hamza Khan to uncover the exchange’s connection to fraudulent online investing mobile applications.
KARACHI: Federal Investigation Agency (FIA) has detected an online fraud of Rs100 billion using a cryptocurrency and issued notice to the local representative of Binance, @cz_binance @binance @BinanceHelpDesk @BinanceUS pic.twitter.com/3oukwzmDqh
— Innocent Pashteen✌ (@FighterDawar) January 7, 2022
The notice further stated that “a relevant questionnaire has also been sent to Binance Headquarters Cayman Islands and Binance US to explain the same.” Under the promise of unrealistic profits, investment fraudsters in Pakistan asked people to register on Binance and transfer the funds to third-party wallets. The following is taken from the FIA notice:
“These schemes benefit old clients at the cost of new clients and ultimately disappear when they have made a substantial capital base worth billions of rupees.”
Pakistan found at least 11 fraudulent apps
The authorities in Pakistan detected over 11 phony mobile apps based on complaints filed that suddenly stopped running after eventually taking the user’s payments. MCX, HFC, HTFOX, FXCOPY, OKIMINI, BB001, AVG86C, BX66, UG, TASKTOK, and 91fp are among the apps detected by FIA.
Binance, in October 2021, welcomed its first chief regulatory Liaison officer to talk out the corresponding regulatory compliance.
The scammers invited the victims to a Telegram group for delivering “professional betting signals,” in addition to directing people to sign up on Binance to transfer the monies. On average, each program had roughly 5,000 users.
Binance has also been asked for additional information, including formal supporting documentation and the API integration mechanism adopted by the fraudsters to access Binance’s services.