March 30, 2024

Pakistan‘s Federal Investigation Agency (FIA) reportedly issued a formal notice to crypto exchange Binance in an effort to identify links around a multi-million crypto scam in the region. 

The government of Pakistan started a criminal investigation after receiving numerous complaints against an ongoing scam that involved misleading investors into sending funds from Binance wallets to unknown third-party wallets. According to local coverage, the FIA’s Cyber Crime Wing has issued an order of attendance to Binance Pakistan’s general manager Hamza Khan to identify the exchange’s link to “fraudulent online investment mobile applications.”

“A relevant questionnaire has also been sent to Binance Headquarters Cayman Islands and Binance US to explain the same,” read the notice. The investment frauds in Pakistan were carried out by asking users to register on Binance and transfer funds to third-party wallets under the pretext of unrealistic returns. According to the FIA notice:

“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.”

Based on the complaints raised by…

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