FIA probes Binance in mega crypto scam

FIA probes Binance in mega crypto scam

KARACHI: The Federal Investigation Agency (FIA) has summoned representatives of Binance, an international buy/sell platform for cryptocurrencies, in a scam, which deprived many Pakistanis from billions of rupees.

The FIA took the action following around Rs18 billion lost that were invested in cryptocurrencies through nine different mobilephone applications. These applications were linked to Binance.

It was the first time an international crypto exchange had been summoned in financial crime.

According to details transactions worth billions of rupees were made through mobile applications for investment in cryptocurrencies. The FIA summoned local representative of Binance after receiving complaints against these mobile applications, which were shut suddenly.

The investigation agency believed that the money transferred through the mobile applications were engaged in money laundering and terror financing. The FIA said that the fraudsters had adopted the novel way to rob people.

Recently, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) reported huge investment of $20 billion made by Pakistanis in cryptocurrencies.

The FPCCI demanded the authorities to regulate and streamline these virtual assets for which the value for investment by Pakistanis has reached $20 billion before it lands in other more convenient countries.

The State Bank of Pakistan (SBP) and Securities and Exchange Companies of Pakistan (SECP) through public notices had warned people that the cryptocurrency was not legal tender in Pakistan and also no such investment has been allowed due to risks involved to this.

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