Report: Pakistan Authorities to Investigate Crypto Exchange Binance in Suspected $100 Million Scam

Pakistan's federal investigative agency (FIA) has issued an official notice to Binance, a cryptocurrency exchange that has been linked to a huge fraud. The FIA will look into allegations from Binance consumers who claim the crypto exchange forced them to transfer assets to unknown third-party wallets. People are thought to have lost over $100 million as a result of the hoax. A notification has also been sent to Binance's headquarters in the British-controlled Cayman Islands, requesting answers. The notification was sent to Hamza Khan, the general manager and growth analyst of the Binance business in Pakistan.

According to a report by Pakistan's Dawn News, investigators have requested Khan to explain the company's links to "fraudulent online investing mobile applications." During an initial investigation, Pakistani officials discovered eleven fraudulent applications that were illegally collecting payments from users. These applications' names are a jumble of abbreviations that may or may not imply anything. HFC, MCX, HTFOX, BB001, and AVG86C are just a few of the programs available. Later, the con artists enticed investors to join Telegram channels where they were promised "professional betting recommendations." According to sources, each of these fraudulent Telegram channels housed up to 5,000 users.