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Binance Under Scrutiny in Alleged $100M Scam

Binance, Global, Regulatory, Frameworks, Crypto, Markets, Rights, Users
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Pakistan’s Federal Investigation Agency (FIA) has said it wants to speak with cryptocurrency exchange Binance about a scam that has netted more than $100 million from several thousand investors, CoinDesk reported on Monday (January 10).

The scam in question involved 11 mobile apps, 26 wallets, and several thousand investors.

On December 20, 2021, several Pakistani residents contacted the agency, inquiring as to why the applications had stopped working. There were reports of “billions of rupees” of fraud against Pakistanis.

The FIA ​​sent a letter to Hamzah Khan, General Manager of Binance and Growth Analyst at Binance Pakistan, asking him to “explain his position on linking fraudulent online investment mobile applications with Binance,” and the unit’s head, Imran Riaz, chirp in january. 7.

The report says that investors are asked to register with Binance and then transfer funds from their account to the mobile application.

Meanwhile, a Telegram group has been created where participants can bet on the rise and fall of bitcoin. With a big capital build up, the app crashed and a lot of people lost their money. The report says the investment range is between $100 and $80,000, and the average is about $2,000 per person.

The report also states that all bank accounts have been blocked and Telegram has been contacted. In addition, the influencers who promoted the apps received legal notices, and Binance was asked to provide details of the wallets.

PYMNTS has reported on Binance’s issues before, writing that the Ontario securities regulator said that Binance had not complied with the rules and was not authorized to trade in the province.

Read more: Binance Unauthorized, Canadian Regulator Says

The Ontario Securities Commission (OSC) has informed its investors that Binance has told its employees that there will be no new transactions involving Ontarians from December 31, 2021.

Binance has also issued a notice to users to the contrary that says otherwise.

The OSC called it “unacceptable” and said any unregulated platforms operating in the province could face action.

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