At least 100 million dollars have been embezzled from the investors of Pakistan who were allegedly victimized by a crypto fraud. This is the first crypto fraud that has ever occurred in Pakistan and is highlighted in the global press. The top law enforcement agency of Pakistan has initiated an investigation and as a first step issued a notice to an offshore crypto trading platform called, Binance and requested information.
Federal Investigation Agency of Pakistan (FIA) has alleged that a crypto fraud has occurred on Pakistani soil. The top investigation agency of Pakistan has reported that the fraud was of the ‘investment’ type. Investors were made to believe that the offer was genuine and was made to use certain types of decentralized applications. Resultantly, they lost more than US$ 100 Million under an investment fraud to the perpetrators.
DG FIA told the press that investors had been lodging complaints with the complaint cell of the Authority. In these complaints, the investors informed that some people, with whom the investors had invested, asked them to use 9 different decentralized apps. Through these apps, investors were asked to send their funds for the purposes of investment and open an account with Binance exchange. FIA noted that the victimized investors included mostly men of young age (aged between 25 to 50 years old). Each of them invested not less than US$ 100 and not higher than US$ 80,000, said FIA. However, on an average basis, each investor had invested approximately US$ 2,000 at least.
The criminals then asked the investors to use the recommended 9 apps for transferring their funds from Binance accounts into apps. After the transfers were executed successfully, these apps became in-operational and it was then that investors realized that they were scammed.
For seeking information from Binance, FIA has issued a notice to a Pakistani national who goes by the name “Hamza Khan”. This person is alleged to be a Binance representative working and residing in Pakistan. Khan has been called upon to appear in person before the authority on the 10th of January, 2022, and assist in the investigation. Meanwhile, separate questionnaires have been further sent via courier to Binance Global at its registered address in the Cayman Islands.