Crypto exchange Binance served notice by FIA in multi-million dollar scam

FIA Binance

Federal Investigation Agency (FIA) Cyber Crime wing has issued a notice to crypto currency exchange Binance for their linkage with fraudulent online investment mobile applications.

In a press release, the FIA said that the Cyber Crime Wing had issued an order of attendance to Hamza Khan, the general manager/growth analyst at Binance Pakistan, to explain his position on the company’s linkage to “fraudulent online investment mobile applications”.

“A relevant questionnaire has also been sent to [the] Binance Headquarters [in] Cayman Islands and Binance US to explain the same,” the handout said.

FIA said that recently many online investment frauds are going on in Pakistan on the pattern of Ponzi schemes wherein investors are promised unrealistically high returns on their investment if they bring in more clients.

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“These schemes benefit old clients at the cost of new clients and ultimately disappear when they have made [a] substantial capital base worth billions of rupees,” the handout said.

The FIA further added that on Dec 20, 2021, people from all over the country contacted the agency and said that at least 11 mobile apps had stopped working and had “defrauded people of billions of rupees”.

These apps were identified as MCX, HFC, HTFOX, FXCOPY, OKIMINI, BB001, AVG86C, BX66, UG, TASKTOK and 91fp.

“The modus operandi of these applications was to ask people for registration at Binance Crypto Exchange (Binance Holdings Limited) […] the next step was to transfer money from the Binance Wallet to the account of that particular application.

“At the same time, all the members of the group were added in groups on Telegram where so-called expert betting signals, on the rise and fall of Bitcoin, were given by the anonymous owner of the application and admins of the Telegram groups,” the FIA press release said.

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