Pakistan investigating Binance for involvement in multi-million dollar scam

Share This Post


Binance’s wrangles with regulators have not ended despite the beginning of a new year. Pakistan’s Federal Investigation Agency (FIA) has issued a formal notice to the Binance cryptocurrency exchange regarding a multi-million scam.

The FIA has written notice to Binance asking the giant exchange to identify the links involving the fraud happening in the region.

Pakistan investigating Binance

The government of Pakistan has launched a criminal case against Binance after receiving several complaints of fraud where investors were misled into sending funds from Binance wallets to unknown third-party wallets.

A local publication stated that the Cyber Crime division of the FIA had issued an order of attendance to the general manager of Binance in Pakistan, Hamza Khan. The FIA stated that this order was due to “fraudulent online investment mobile applications.”

The notice also added that the government body had sent a related questionnaire to Binance’s headquarters in the Cayman Islands and Binance US regarding the issue.

Multi-million dollar scam

The issue regarded instances where users were asked to register on the exchange and then transfer funds to third-party wallets, claiming they would receive returns. However, the FIA stated that the scheme only benefited old clients, while new clients did not receive any benefits.

The FIA received complaints from citizens, with the agency stating that at least 11 fraudulent mobile applications were identified that stopped functioning after user funds were stolen. Besides asking clients to register on Binance, the individual/individuals behind the scam asked victims to join a Telegram group for expert insights.

“At least 26 suspect blockchain wallet addresses (Binance wallet address) have been identified where fraudulent amount may have been transferred. A letter has been written to Binance Holdings Limited to give the details of these blockchain wallet accounts as well as to debit block them,” the report stated.

The FIA has already blocked the bank accounts linked to the fraudulent dealings. However, the notice warns that if Binance fails to identify third-party wallets, the agency will impose financial penalties on the exchange. Binance is yet to issue an official public response on the matter.

Pakistan is a major cryptocurrency hub. Last December, the president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Nasir Hayat Magoon, revealed that Pakistanis held cryptocurrencies worth $20 billion. Additionally, a report from Chainalysis stated that Pakistan was the third-largest country in terms of crypto adoption.

Your capital is at risk.

Read more:

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

VanEck maintains $180,000 Bitcoin target as bull market gains steam

VanEck’s latest Bitcoin (BTC) report reaffirmed its cycle price target of $180,000, citing strong bullish indicators that align with the current market rally The asset manager highlighted key

From Code to $100K: Why Bitcoin’s Milestone Matters to Economics

In the crypto universe, bitcoin’s quest to hit $100,000 feels like reaching the climactic level in a video game—an epic showdown that embodies years of persistence, strategy, and

Bitcoin Price Mirrors 2017 Pattern, Is The Top Only 2 Weeks Away After Hitting $100,000?

The Bitcoin price is well on its way to reaching the $100,000 price mark, with multiple projections saying it could do so by this weekend Notably, the Bitcoin price reached an intraday high of

Big Breaking: Bitcoin Miner MARA Purchases Another 5771 BTC For $572M

The post Big Breaking: Bitcoin Miner MARA Purchases Another 5771 BTC For $572M appeared first on Coinpedia Fintech News In the latest development, Bitcoin miner MARA Holdings has revealed that it has

Trump’s election win revives push for comprehensive crypto reforms

Following Donald Trump’s election as the new US President, regulators are pushing for crypto market reforms, from establishing regulatory sandboxes to allowing tokenized funds’ shares as

How Crypto Is Changing Online Gambling and Betospin Leads the Way

As online gambling is evolving, cryptocurrencies have come into their own and provide better security, speed and universal access For online platforms like Betospin, adopting crypto payments is about