The crypto myth that its security is unbreakable has been proven false many times over. The latest is a multi-million-dollar scam being investigated by the federal agency or Pakistan’s FIA. Fraud involves misleading investors into sending funds from Binance wallets to unknown third-party wallets, reports Cointelegraph.
Scammers scam investors worth millions of rupees
The FIA, Pakistan’s main central investigative agency, has issued a notice to crypto exchange Binance to uncover links surrounding a regional multi-million-dollar crypto scam. Following a number of complaints about investors being tricked into sending funds from Binance wallets to unknown third-party wallets, a criminal investigation has been initiated.
Pakistans FIA sends notice to global crypto exchange Binance alleging $100 million scam #Pakistan # cryptocurrency #cheat https://t.co/TwSVrTqSPF pic.twitter.com/zADZEjUg4T
– BitcoinAgile (@bitcoinagile) January 9, 2022
Locally obtained news reports that the FIA’s Cybercrime Wing has issued an attendance order to Binance Pakistan’s general manager Hamza Khan. In addition, the process of identifying the exchange’s affiliation with fraudulent online investment mobile applications has been initiated.
The notice detailing the related questionnaire was sent to Binance Cayman Islands Headquarters and Binance US to explain the same. The method of cheating is very simple.
Huge and unrealistic profits were promised, and users were tricked into signing up on Binance and transferring funds to third-party wallets. These plans benefit old customers at the expense of new customers. After killing people worth billions of rupees, they finally disappeared.
Fraudulent Cryptocurrency Mobile App
More than 11 fraudulent mobile apps that suddenly stopped working after successfully stealing user funds have been identified. Applications identified by the FIA are MCX, HFC, HTFOX, FXCOPY, OKIMINI, BB001, AVG86C, BX66, UG, TASKTOK and 91fp.
Besides tricking users into transferring money, the apps also add victims to a Telegram group to provide professional betting signals. Each application hosts about 5,000 customers on average.
Pakistan’s Federal Bureau of Investigation is said to have made an official announcement to Binance. The notice reads: “At least 26 suspected blockchain wallet addresses (Binance wallet addresses) have been identified where the fraudulent funds may have been transferred. A letter has been written to Binance Holdings Limited to provide details on these blockchain wallet accounts as well as to debit them. ”
FIA has locked down bank accounts linked to suspicious apps and warned that failure to comply could lead to severe penalties for Binance via State Bank of Pakistan