Pakistan Authorities Dismantle $60 Million International Crypto Fraud Network
Another international crypto scheme gets busted—this time with a $60 million price tag.
The Crackdown Unfolds
Authorities in Pakistan just pulled the plug on a sprawling digital asset fraud operation. The network spanned borders, targeting investors globally before local enforcement stepped in. It's a familiar story: promise outsized returns, exploit regulatory gray areas, and disappear with the funds. This takedown shows that while the tech moves fast, the long arm of the law is learning to keep up.
Following the Digital Trail
Investigators traced the flow of funds across multiple wallets and platforms. The sheer scale—$60 million—highlights how these operations leverage crypto's borderless nature to cast a wide net. It's a stark reminder that the 'wild west' phase attracts both pioneers and outlaws. For every legitimate builder, there's a grifter looking for a quick score, often using the same tools and hype.
The Bigger Picture
This bust isn't an isolated event. It's part of a global tightening. Regulators are increasingly coordinating across jurisdictions, piecing together blockchain breadcrumbs that don't lie. While critics scream 'overreach,' these actions are slowly building the guardrails mainstream finance demands. After all, nothing legitimizes an asset class like watching the bad actors get cuffed.
So, another fraud network falls. It's a win for enforcement, a warning for scammers, and a cynical nod to tradition—where there's money to be made, someone will always try to steal it, digital or not.
Law enforcement nabs crypto fraud network
According to Pakistani authorities, victims were initially shown fabricated proof of profits to build confidence before being asked to pay additional fees under various pretexts. Once their victims commit larger sums, the perpetrators MOVE to block their accounts and steal their funds.
Proceeds were routed through several bank accounts before they were moved into digital assets and then moved across borders.
The latest effort marks a major move by law enforcement as part of a broader effort to eliminate the type of unregulated, cross-border activity that has flourished in the absence of regulations in the crypto industry in Pakistan.
The bust also comes as Islamabad rolls out a new licensing regime for VIRTUAL assets under its dedicated regulator, the Pakistan Virtual Assets Regulatory Authority (PVARA). The authority has been tasked with bringing crypto activities under formal supervision.
PVARA has also been charged with focusing on licensing, anti-money laundering controls, and consumer protection.
The enforcement action and the regulatory rollout point to a clear strategy. The authorities are moving aggressively to shut down illicit operators while creating a legal pathway for large, compliant firms to enter one of the most active crypto markets in the world.
According to Bilal Bin Saqib, chairman of PVARA, the efforts of PVARA will provide support to the 40 million user base in the market.
Pakistan continues to make moves in the crypto industry
Aside from its regulatory push and enforcement against illicit actors, PVARA has issued No Objection Certificates (NOCs) to Binance and HTX. The certificates will allow both firms to kickstart their licensing processes. They are expected to register with the country’s Anti-Money Laundering system, which will prepare them for a full licensing application.
“This phased approach allows us to begin providing AML-registered cross-border services to Pakistani users while we continue working closely with PVARA toward full authorization,” Binance said in a statement.
According to a previous Cryptopolitan report, Pakistan also signed a memorandum of understanding (MoU) with Binance. Under the terms of the agreement, the exchange is expected to provide guidance to the country as it prepares to explore tokenizing up to $2 billion in state-owned assets.
Binance will provide expertise on blockchain-based distribution of treasury bills and commodity reserves, including gas, metals, and commodities.
In addition, Pakistan recently announced plans to launch its first stablecoin as it continues to eye the launch of a central bank digital currency (CBDC).
“We want to be at the forefront of this financial digital innovation that is happening. Why should we be at the tail-end of it when we have the muscle and the adoption?” Bilal Bin Saqib said.
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