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January 9, 2022

Pakistan Investigating Binance in a $100 Million Crypto Scam

After receiving many complaints about an ongoing scam that involves investors being duped into transmitting funds from Binance wallets to unknown third-party wallets, Pakistan’s federal authorities launched a criminal inquiry.

According to a statement from the FIA’s cybercrime department, the notice summoned Binance Pakistan’s general manager or growth analyst to come and explain the company’s viewpoint on the exchange’s linkage with fraudulent online investment mobile applications.

According to local reports, the FIA’s Cyber Crime Wing has issued a summons to Binance Pakistan’s General Manager Hamza Khan in order to determine the exchange’s connection to fraudulent online investing mobile applications.

Under the guise of unrealistic profits, investment fraudsters in Pakistan asked people to register on Binance and transfer funds to third-party wallets. The following is taken from the FIA notice:

“A relevant questionnaire has also been sent to Binance Headquarters Cayman Islands and Binance US to explain the same. These schemes benefit old clients at the cost of new clients and ultimately disappear when they have made substantial capital base worth billions of rupees.”

People from all around Pakistan filed complaints with the FIA last month, alleging that at least 11 mobile applications had ceased working over time and had robbed them of billions of Pakistani rupees, according to the FIA.

According to the statement, the early investigations revealed that each such application had an average of 5,000 customers, with HFC, one of the applications, having a high of 30,000 customers.

According to the FIA, the alleged investment ranged from $100 to $80,000 per individual, with an average of $2,000 per person, putting the total swindle at approximately $100 million.

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The Pakistani government detected at least 11 fake mobile apps based on citizen complaints that suddenly ceased running after successfully taking the user’s payments. MCX, HFC, HTFOX, FXCOPY, OKIMINI, BB001, AVG86C, BX66, UG, TASKTOK, and 91fp are among the apps detected by FIA.

The fraudsters joined the victims to a Telegram group for professional betting signals in addition to pushing them to sign up on Binance to transfer the monies. On average, each program had roughly 5,000 users.