Pakistan to Investigate Crypto Exchange Binance in Alleged $ 100 Million Scam

The Federal Investigation Agency of Pakistan has reportedly issued a formal notice to Binance after receiving multiple reports of a crypto scam that tricked investors into sending funds from their Binance wallets to unknown third-party wallets.

Pakistan to investigate cryptocurrency exchange Binance

According to a local media report, the Pakistani agency identified approximately 11 fraudulent mobile applications that were used to steal investor funds. The list of applications identified by the FIA ​​is HFC, MCX, HTFOX, FXCOPY, OKIMINI, BB001, AVG86C, BX66, UG, TASKTOK and 91fp.

According to the FIA ​​notice:

“A relevant questionnaire was also sent to Binance headquarters in the Cayman Islands and Binance US to explain the same.”

According to Imran Riaz, the FIA’s head of cybercrime in Sindh, a letter was also sent to GM Binance Pakistan.

The scam consisted of tricking investors into transferring funds to third-party wallets from Binance wallets. Later, the scammers also invited users to the Telegram messaging app offering them “expert gambling signals.” Each app’s Telegram channel was home to approximately 5,000 users. The reported scope of funds that were stolen from users ranges from $ 100 to $ 80,000.

The notice further stated that approximately 26 blockchain wallet addresses have been identified where the fraudulent amount may have been sent. According to the official notice, a letter was sent to Binance to disclose the list of wallet addresses that may contain the fraudulently transferred funds. Law enforcement administrators also reached to the popular messaging app Telegram for more clarity and blocked all accounts linked to the scam.

In response to the news, Binance Pakistan also tweeted, stating that the exchange will cooperate with the agency to resolve such issues.

Posted in: Binance, Scams

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