The Pakistani Federal Bureau of Investigation (FIA) has reportedly issued an official notice to crypto exchange Binance in an attempt to uncover links to the multi-million dollar crypto scam in the region.
The Pakistani government has launched a criminal investigation after receiving a series of complaints about ongoing fraud that is misleading investors into sending funds from Binance wallets to unknown offshore wallets. According to a local report, the FIA’s cybercrime division has scheduled a meeting with Binance General Manager Hamza Khan of Pakistan to determine the exchange’s link to “online investment fraudulent mobile apps.”
“A related questionnaire was also sent to Binance’s Cayman Islands headquarters and Binance US to explain the same thing,” the announcement said. Investment scams were perpetrated in Pakistan when users were asked to register on Binance and transfer funds to third-party wallets under the pretext of unrealistic profits. According to the FIA:
“These schemes benefit old clients at the expense of new ones and eventually disappear when they acquire a large capital base of billions of rupees.”
Based on complaints from residents, the Pakistani agency identified at least 11 fraudulent mobile apps that suddenly stopped working after stealing user funds. FIA-defined applications: MCX, HFC, HTFOX, FXCOPY, OKIMINI, BB001, AVG86C, BX66, UG, TASKTOK and 91fps.
In addition to instructing users to register on Binance to transfer funds, the scammers also place victims on the Telegram group to provide “professional gaming signals”. Each application served an average of about 5,000 customers. Message added:
“At least 26 suspicious blockchain wallet addresses (Binance wallet addresses) have been identified where fraudulent funds can be transferred. A letter was written to Binance Holdings Limited detailing these blockchain wallet accounts, as well as their write-offs. ”
Binance was also asked to provide details, including official support documents and a mechanism for integrating the APIs that scammers use to connect to Binance’s services. Although the FIA has previously blocked bank accounts associated with suspicious applications, the warning contains a warning:
“In case of non-compliance, the FIA Cyber Crime is entitled to recommend financial sanctions to Binance through the State Bank of Pakistan.”
Binance has yet to respond to Cointelegraph’s request for comment.
Related Topics: Pakistanis Own $ 20 Billion Cryptocurrency, Local Association Leader Says
In December 2021, President of the Federation of Pakistani Chambers of Commerce and Industry (FPCCI) Nasir Hayat Majun announced that the total value of the cryptocurrency of Pakistani citizens is $ 20 billion.
As reported by Cointelegraph, the head of the FPCCI has confirmed the numbers based on a research article published by the chamber. To back up this claim, Pakistan was ranked third in terms of the index, behind Vietnam and India, in the Chainalysis 2021 Global Cryptographic Implementation Index.