Pakistan FIA Sends Global Crypto Exchange Binance Notice In Alleged $ 100 Million Scam

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The reported investment range per person ranged from $ 100 to $ 80,000 with an estimated average of $ 2,000 per person, bringing the estimated scam to nearly $ 100 million, the FIA ​​said.

Pakistan’s Federal Investigative Agency (FIA) has issued a notice to Binance, the world’s largest cryptocurrency trading platform, in connection with an alleged crypto scam valued at nearly $ 100 million in the country. According to the notice and press release issued by the Karachi-based FIA, the agency said that on Monday, December 20, people from all over Pakistan started contacting FIA Cyber ​​Crime Sindh via social media and said. disclosed at least 11 mobile apps namely MCX, HFC, HTFOX, FXCOPY, OKIMINI, BB001, AVG86C, BX66, UG, TASKTOK and 91fp that these apps stopped working for a while and defrauded Pakistanis of billions of rupees .

“The action of the Federal Cybercrime Investigation Agency Sindhs on 11 online investment applications integrated into @binance. The apps defrauded Pakistanis of around $ 100 million. A letter has been sent to Binance along with a notice to GMBinancePakistan, Imran Riaz, Head of Cyber ​​Crime Zone, Sindh, FIA, tweeted Friday.

The FIA ​​had sent a questionnaire to Binance Headquarters in the Cayman Islands and BinanceUS asking for the terms under which permission was granted for these apps / companies to link to Binanceexchange aside from other details. An attendance order was also issued to Binance Pakistans Managing Director / Growth Analyst Hamza Khan to explain his position on the link between fraudulent online investing mobile apps and Binance.

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Each app had an average of 5,000 clients, with HFC apparently having a maximum of 30,000 clients, the agency said adding that the investment range per person was $ 100 to $ 80,000 with an estimated average of $ 2,000 per person. person, which makes the scam estimated. amount to nearly 100 million US dollars.

Binancein tweeted on Friday, “We do not comment on specific issues with regulatory and law enforcement authorities. However, as a policy, our general approach is to cooperate with investigations to the extent possible. Specifically, Binance tries to work closely with law enforcement and the regulatory community with the goal of developing best practices, mitigating and thwarting new methods of crime, and preventing illicit proceeds from being released. enter our exchange. We are working with the Federal Investigation Agency to resolve these issues.

The scam was reported days after the local industry body, the Federation of Pakistan Chamber of Commerce and Industry, in its research last month, said Pakistanis held $ 20 billion. in cryptocurrencies in 2020-2021.

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