Pakistan’s Federal Investigative Agency said on Friday it had issued a notice to a popular cryptocurrency exchange, while investigating a multi-million dollar scam linked to fraudulent online investing mobile apps .
An attendance order was issued to Hamza Khan, Managing Director / Growth Analyst of Binance Pakistan, to explain his position on the company’s link to “fraudulent online investment mobile apps,” a statement from press of the FIA Cyber Wing (Sindh).
The agency said the investigation was conducted to examine the multitude of online investment frauds taking place in Pakistan under the guise of Ponzi schemes, in which gullible investors are promised high returns on their investments. provided that they attract more customers.
A relevant questionnaire was also sent to
On December 20 of last year, the agency received several complaints from people across the country, who had lost billions of rupees while operating from certain mobile apps. These have been identified as MCX, HFC, HTFOX, FXCOPY, OKIMINI, BB001, AVG86C, BX66, UG, TASKTOK and 91fp.
The FIA said these apps trick people into registering with Binance Crypto Exchange (Binance Holdings Limited) and then transferring money from the Binance wallet to that particular app’s account.
At the same time, all group members were added to groups on Telegram, where expert betting signals, on the rise and fall of Bitcoin, were given by the anonymous owner of the app and the administrators of Telegram groups, according to the statement. These apps crashed once a sizable capital base was established, robbing people of millions of dollars through the “referral bonus process,” he added.
The FIA said initial findings show that each app has an average of 5,000 customers, with the HFC app reporting a maximum customer base of 30,000. Telegram authorities have been contacted by the agency to advise on the location of the administrators of fraudulent applications. “Social media influencers promoting these apps are also given legal notices to explain their point of contact with the apps,” the statement added.
First publication: STI