Pakistan To Investigate Binance For A $100M Scam

Pakistan’s Federal Investigation Agency (FIA) issued a notice to the local representative of Binance on 6 January, after investors from the country became victims of a massive fraud using cryptocurrency (Binance is a cryptocurrency exchange which is the largest exchange in the world in terms of daily trading volume of cryptocurrencies). Multiple media reports reveal that the scam involved an aggregate loss of 100 million dollars.

A FIA Cyber Wing press release told that said notice entails “an order of attendance issued to Hamza Khan, the general manager/growth analyst at Binance Pakistan, to explain his position on the company’s linkage to fraudulent online investment mobile applications.” They also added that “a relevant questionnaire has also been sent to Binance Headquarters Cayman Islands and Binance US to explain the same.”

What Happened?

According to Bitcoin, the fraudsters engaged in this employed mobile apps offering Pakistanis crypto investment opportunities and people sent between $100 and $80,000, or an average of $2,000 per person. People were urged to register at Binance, the world’s leading crypto exchange, and transfer the money from the Binance wallet to accounts linked to the applications.

The press also explained that “at the same time, all members of the group were added in groups on Telegram, where expert betting signals, on the rise and fall of Bitcoin, were given by the anonymous owner of the application and admins of the Telegram groups.”

The government commenced the criminal investigations after receiving several complaints (on December 20 last year), regarding the ongoing scam that misguided crypto investors to transfer funds from Binance wallets to unknown third-party wallets.

Some of these embezzling applications were identified as MCX, HFC, HTFOX, FXCOPY, OKIMINI, BB001, AVG86C, BX66, UG, TASKTOK and 91fp.

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Sneh Dokania is an Economics major student with an inquisitive disposition seeking to articulate facts, information and news stories in a candid manner on Clout News.

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