Pakistan FIA Demand Audience With Binance Executive Following Fraudulent Apps

Share Article
In Brief
  • The Federal Intelligence Agency of Pakistan is calling Binance Pakistan out to explain its association with several fraudulent crypto apps.

  • Pakistanis had invested over $100M in crypto using the apps.

  • The apps had used Binance’s wallet to launder money.

  • promo

    KuCoin Releases KCS whitepaper – a Path for Geek to Mass Adoption Read now!

The Trust Project is an international consortium of news organizations building standards of transparency.

Binance has expressed its willingness to co-operate with the FIA regarding the fraudulent use of crypto wallets, which has affected many citizens’ crypto investments.

Following complaints by Pakistanis to the Federal Intelligence Agency (FIA) on Dec. 20, 2021, the agency has issued a request to a local Binance representative to appear in person on Jan. 10, 2022. According to the Additional Director of the FIA cybercrime wing, Imran Riaz, this is in connection with fraud that saw $100M transferred overseas in cryptocurrency.

Ten mobile applications linked to Binance were offering Pakistanis the option of investing in cryptocurrency. The applications tricked people into registering at Binance Holdings Limited, and then to transfer money from a Binance wallet to the account of the application owners. The owners of these applications informed customers via Telegram groups when to buy and sell crypto. The applications subsequently disappeared, resulting in Rs17.7B lost. People had invested between $100 and $80K in these applications.

Riaz further said that money is being used in money-laundering activities and terrorism financing. The actors suspected of engaging in fraud would have their crypto accounts frozen.

The State Bank of Pakistan in 2018 told the public that no individual or entity was authorized to sell, issue, buy, or invest in digital assets in Pakistan. Fast-forward to July 2021, and the bank’s governor reported that the bank had been studying cryptocurrencies from April 2021. A report recently released by the Federation of Pakistan Chambers of Commerce and Industry revealed that citizens held $20B worth of virtual assets. The Federal Board of Revenue launched a probe into where investors’ funds were coming from.

Pakistan FIA demands clarity

The FIA issued a notice to Hamza Khan, the local Binance representative, with the title of general manager/growth analyst. “During the inquiry, it was found that the fraudulent accounts of different applications, namely MCX, HFC, HTFOX, FXCOPY, OKMINI, BB001, AVG86C, BX66, 91fp, and TASKTOK, were linked with Binance wallets,“ officials said. HFC had 5000 customers, and another app had had 30000 customers.

A questionnaire has been sent to Binance headquarters in the Cayman Islands and Binance US to explain the exchange’s position on the link between third-party applications and itself.

Binance Pakistan’s response

Binance Pakistan posted this response on Twitter, “We do not comment on specific matters with regulatory and law enforcement authorities. However, as a matter of policy, our general approach is to co-operate with investigations wherever possible. Specifically, Binance tries to work closely with the law enforcement and regulatory community to develop best practices, mitigate and thwart new methods of criminality and prevent illicit proceeds from entering our exchange. We are working with the Federal Investigation agency to resolve these issues.”

What do you think about this subject? Write to us and tell us!

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Share Article

David is an electronic engineer with nine years of experience. He joined BeInCrypto to combine his passion for writing and his interest in fast-moving industries, cultivated from his university days. He hopes to make crypto easy to understand.

Follow Author

KuCoin Releases KCS whitepaper – a Path for Geek to Mass Adoption      

Read now

KuCoin Releases KCS whitepaper – a Path for Geek to Mass Adoption

Read now

Olympus, a P2E NFT Game Similar to Clash Royale, Is Making Headlines

Read Now