FIA detects US$100 mn online fraud using cryptocurrency

KARACHI: Federal Investigation Agency (FIA) has detected an online fraud of USD100 million using a cryptocurrency and issued notice to the local representative of Binance, ARY NEWS reported.

Sharing details of the fraud, Additional Director of the FIA cybercrime wing Imran Riaz said that those involved in the online fraud transferred the money abroad via cryptocurrency.

“We launched a probe after receiving complaints regarding a fraud involving billions of rupees being committed using nine online applications,” he said and added that they had sought answers in this regard from a representative of the cryptocurrency in Pakistan.

He shared that people invested between US$100 to US$80,000 in fraud applications. “Those who developed these apps were linked to cryptocurrency,” the FIA official said.

He said that they have sought details of all those linked to the fraud with the Binance cryptocurrency and their crypto accounts would be suspended.

The FIA official further shared that cryptocurrency is being used in money laundering and terror financing.

Read More: FIA OFFICIALS HELD FOR FACILITATING SUSPECT IN HIDING CRYPTOCURRENCY ACCOUNTS

Last year in September, the central bank opposed the use of digital currency in the country saying it has already issued an advisory warning against trade in virtual currency as it is not legal tender.

During a Sindh High Court hearing, a petitioner stated that the State Bank imposed a ban on the use of digital currency on April 6, 2018 despite developing countries are earning significant revenue from the cryptocurrency which doesn’t pose any threat to national interests.