The Pakistan Federal Investigative Agency (FIA) has said it wants to discuss with the Binance cryptocurrency exchange a scam that has wrested more than $ 100 million from several thousand investors, CoinDesk reported. Monday January 10.
The scam in question involved 11 mobile apps, 26 wallets and several thousand investors.
On December 20, 2021, many Pakistani residents contacted the agency, asking why the apps had stopped working. There have reportedly been cases of “billion rupee” Pakistanis being swindled.
The FIA sent a message to Humza Khan, managing director of Binance and growth analyst at Binance Pakistan, asking him to “explain his position on the link between fraudulent online investment mobile apps and Binance,” the chief. of unity, Imran Riaz, tweeted January 7.
The report says investors were asked to register with Binance and then transfer money from their accounts to the mobile apps.
Meanwhile, a Telegram group was formed where participants could bet on the rise and fall of bitcoin. While considerable capital was being built up, the app crashed and many people lost money. The report states that the investment range was between $ 100 and $ 80,000, and the average was around $ 2,000 per person.
The report also notes that all bank accounts have been blocked and Telegram has been contacted. Additionally, influencers who promoted the apps were given legal notices and Binance was asked to provide details on the portfolios.
PYMNTS has previously reported Binance’s problems, writing that the Ontario securities regulator said Binance has not complied with the rules and is not licensed to trade in the province.
Read more: Binance Not Licensed, Says Canadian Regulator
The Ontario Securities Commission (OSC) has informed its investors that Binance has told its staff that there will be no new transactions involving residents of Ontario as of December 31, 2021.
Binance has also published a notice to users indicating otherwise.
The OSC called it “unacceptable” and said any unregulated platform operating in the province could be subject to action.