The FIA said the reported range of investment per capita was from $100 to $80,000 with an estimated average of $2,000 per person, making the estimated scam around $100 million.
Pakistan’s Federal Investigation Agency (FIA) has issued a notice to the world’s largest cryptocurrency exchange Binance regarding an alleged crypto scam worth around $100 million in the country. According to the notification and subsequent press release issued by the Karachi-based FIA, the agency said, “On Monday 20y In December, people from all over Pakistan started contacting FIA Cyber Crime Sindh through social media and revealed no less than 11 mobile apps namely MCX, HFC, HTFOX, FXCOPY, OKIMINI, BB001, AVG86C, BX66, UG, TASKTOK, and 91 fps. The orders stopped working over a period of time and cheated the Pakistani people with billions of rupees.”
“The FBI’s Cyber Crime Sindh action on 11 online investment apps integrated with binance. The apps scammed Pakistanis around $100 million. A letter was sent to Binance as well as a notice to GM Binance Pakistan,” said Imran Riaz, Head of Crime District. Electronic in Sindh, FIA on Friday.
The FIA sent a questionnaire to the Binance headquarters in the Cayman Islands and Binance US asking about the terms under which these apps/companies have been given permission to connect with the Binance exchange apart from other details. A “warrant to attend” was also issued to Binance Pakistan General Manager/Growth Analyst Hamzah Khan to explain his position on linking “fraudulent online investment mobile applications with Binance.”
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Each app has an average of 5,000 customers with HFC said to have a maximum of 30,000 customers, the agency said, adding that the reported range for investment per person is from $100 to $80,000 with an average estimate of $2,000. For each person, making discretion. The scam stands nearly $100 million USD.
In a tweet on Friday, Binance said: “We do not comment on specific matters with regulatory and law enforcement authorities. However, as a matter of policy, our general approach is to cooperate with investigations where possible. Specifically, Binance is trying to work closely with the authorities of Law enforcement and the regulatory community in an effort to develop best practices, mitigate and thwart new ways of criminality and prevent illicit proceeds from entering the exchange. We are working with the FBI to solve these issues.”
The scam was reported days after the local industry body Federation of Pakistan Chamber of Commerce and Industry announced in its research last month that Pakistanis own $20 billion in cryptocurrency in 2020-21.
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