Binance has indicated that it is willing to work with the Federal Intelligence Agency to investigate the fraudulent usage of crypto wallets, which has harmed many citizens’ crypto assets.
On Dec. 20, 2021, the FIA received complaints from Pakistanis and issued a request to a local Binance representative to appear in person on Jan. 10, 2022.
This is in conjunction with a fraud in which $100 million was transported overseas in cryptocurrencies, according to Imran Riaz, director of the FIA’s cybercrime wing.
Apps affiliated to Binance
Ten Binance-affiliated mobile apps were offering Pakistanis the opportunity to invest in cryptocurrencies.
People were duped into enrolling with Binance Holdings Limited and then transferring money from a Binance wallet to the application owners’ account.
Customers were notified when to buy and sell cryptocurrency via Telegram groups by the operators of these programs.
Following that, the applications vanished, resulting in a loss of Rs17.7 billion. These applications had cost between $100 and $80,000 to develop.
Money is also being utilized in money laundering and terrorism financing, according to Riaz.
Individuals whose crypto accounts are suspected of being involved in fraud will have their accounts frozen.
No one is authorized
In 2018, the State Bank of Pakistan informed the public that no person or business in Pakistan was authorized to sell, issue, purchase, or invest in digital assets.
In July 2021, the bank’s governor announced that the bank has been examining cryptocurrencies since April of that year.
Citizens had $20 billion in virtual assets, based on data released by the Federation of Pakistan Chambers of Commerce and Industry.
The Federal Board of Revenue initiated an investigation into the sources of investors’ finances.
Hamza Khan, the local Binance representative, was issued a notice with the designation of general manager/growth analyst by the FIA.
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