Pakistan’s Authorities Send Notice To Binance About $100M Scam
Pakistan’s Federal Investigation Agency (FIA) has issued a notice to the world’s largest cryptocurrency trading platform Binance in connection to an alleged crypto scam worth nearly $100 million in the country.
The alledged scam in question includes 11 mobile applications, 26 wallets and several thousand investors.
On December 20, 2021, numerous Pakistan residents contacted the agency, inquiring about why the apps had stopped working. There were reportedly incidents of defrauding Pakistani people of “billions of rupees.”
The FIA sent a message to Humza Khan, the Binance general manager and growth analyst with Binance Pakistan, asking him “to explain his position on the linkage of fraudulent online investment mobile applications with Binance.”
The head of FIA, Imran Riaz, tweeted:
The Federal Investigation Agency Cyber Crime Sindh’s action on 11 online investment apps integrated with @binance.The apps defrauded Pakistanis with about 100 million $. A letter has been sent to Binance as well as notice to GM Binance Pakistan. @cz_binance@Cointelegraphpic.twitter.com/8ayZJwjZrM
According to the report investors had been asked to register with Binance and then transfer money from their accounts to the mobile applications.
Meanwhile, a Telegram group was established where participants could bet on the rise and fall of bitcoin. As considerable capital was set up, the app crashed and a lot of people lost money. According to the report the invested amounts ranged between $100 and $80,000, with an average of around $2,000 per person.
The report also notes that all the bank accounts have been blocked and that Telegram has been contacted. In addition, influencers that have promoted the apps have been given legal notices, and Binance has been asked to provide details of the wallets.
Binance and Regulatory Issues
Due to regulatory issues Binance announced in September last year that it would soon stop offering access to futures, options and leveraged tokens trading for its users in Australia. Existing users have 90 days to close their positions.
In the same month U.S. officials have opened another investigation on crypto exchange Binance looking into possible insider trading and market manipulation at Binance.
