The Federal Investigation Agency’s (FIA) Cyber Crime Wing (Sindh) had issued a notice to a popular cryptocurrency exchange, Binance while investigating a multi million dollar scam linked to fraudulent online investment mobile applications.
Read more: FIA Launched E-Investigation System to Facilitate Masses
Binance multi million dollar scam allegedly costed $100 million to Pakistani investors
FIA said that many online investment frauds were operating in Pakistan on the pattern of Ponzi schemes where investors were promised high returns on their investment if they brought in more clients. FIA is currently investigating a multi-million dollar scam involving 11 Binance-linked applications, through which fraudsters allegedly looted over $100 million from Pakistani investors.
An official statement from FIA reads; “Cyber Crime Wing had issued an order of attendance 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. A relevant questionnaire has also been sent to Binance Headquarters in the Cayman Islands and Binance US to explain the same.” The FIA further added that on Dec 20, 2021, people from all over the country contacted the agency and said that at least 11 mobile apps had stopped working and had defrauded people of billions of rupees.
Binance – liked applications are being investigated
According to FIA, a binance-linked application lured people into a multi-million dollar scam by registering at Binance Crypto Exchange (Binance Holdings Limited) and then transferring the money from the Binance Wallet to the account of that particular application. At the same time, all members of the group were added to groups on Telegram, where experts comment on the rise and fall of Bitcoin. These apps crashed once a considerable capital base was established, robbing people of millions of dollars.
The FIA further stated that the reported range of investment per person was from $100 to $80,000 with an estimated average of $2,000 per person thus making the estimated scam stand at nearly $100m. Whereas, the social media influencers promoting these apps are also being served with legal notices to explain their point of contact with the apps.
Source: Pro Pakistani