Binance investigated in Pakistan for multi-million dollar crypto fraud. The Pakistani government has initiated a criminal investigation into an ongoing scam. That involves misleading investors into sending funds from Binance wallets to unknown third-party wallets. The investigation was begun in response to many complaints about the scam.
A formal notice to cryptocurrency exchange Binance has been filed. By Pakistan’s Federal Investigation Agency (FIA) in an effort to trace the origins of a multi-million dollar cryptocurrency scam. In the region, according to sources.
An investigation into an ongoing scam that involves misleading investors. Into transferring funds from Binance wallets to unknown third-party accounts was begun. By the Pakistani authorities in response to a number of complaints about it. The Federal Investigation Agency’s Cyber Crime Wing, according to sources in the local media. Has issued an order of attendance to Binance Pakistan’s general manager Hamza Khan. In order to discover whether the exchange. That has any connection to “fraudulent online investing mobile applications.”
A cryptocurrency worth Rs100 billion has been uncovered by the Federal Investigation Agency (FIA),. Which has issued a warning to the local representative of cryptocurrency exchange Binance.
When it comes to regulatory inquiries, a representative for Binance told Cointelegraph. The company’s basic policy is to comply with them. And that the company’s general approach in such situations. Is to collaborate with the regulatory authorities.
“We at Binance place a high importance on the security of our users’ personal information. Our organization also works directly with government and law enforcement agencies across the globe. “
A Pakistani agency discovered 11 fake smartphone apps by Binance Investigated
Binance Headquarters in the Cayman Islands, as well as Binance US. Have both received a relevant questionnaire in order to provide further explanation,” The notice stated. Investing frauds in Pakistan perpetrated by enticing people to register on Binance. And send funds to third-party wallets under the pretense of receiving unrealistic returns on their investments. The following stated in the FIA notice:
“These schemes enrich existing clients at the expense of prospective clients. And they eventually go out of business once they have built up a big capital base. “These schemes enrich existing clients at the expense of prospective clients. And they eventually go out of business once they have built up a big capital base. Worth billions of rupees.”
“These schemes enrich existing clients at the expense of prospective clients. And they eventually go out of business once they have built up a big capital base.
Based on citizen complaints, the Pakistani agency detected at least 11 fraudulent mobile applications. That suddenly ceased running after successfully taking the monies of their users. Apps such as MCX, HFC, HFOX, FXCOPY, OKIMINI, AVG86C, BX66, UG, TASKTOK. And 91fp have discovered by the Financial Intelligence Agency (FIA).
Additionally, the scammers enrolled the victims in a Telegram group. For the purpose of providing “professional betting signals.” In addition to directing them to join up on Binance in order to transfer the monies. Approximately 5,000 clients served by each application on average. The following was include in the notice:
“At least 26 questionable blockchain wallet addresses (Binance wallet addresses) have found. From which it is possible that illicit funds have transferred. The information of these blockchain wallet accounts, as well as the ability to debit block them. Have requested in a letter to Binance Holdings Limited.
Binance will be penalized by the FIA Cyber Crime
It will be justifiable for the Financial Investigation Agency Cyber Crime to recommend financial sanctions. Against Binance through the State Bank of Pakistan in the event of non-compliance. Binance investigated has also not responded to Cointelegraph’s request for comment at the time of publication.
Nasir Hayat Magoon, the head of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). Revealed in December 2021 that Pakistani citizen. Own also a total of $20 billion in cryptocurrency holdings.
According to Cointelegraph, the FPCCI president validated the figures. Which were also based on a research paper published by the chamber. In support of this allegation, the 2021 Chainalysis Global Crypto Adoption Index. Rated Pakistan third in terms of index score. Behind only Vietnam and India, according to the index’s results.