Pakistani agencies dismantle a $60 million crypto scam network, arresting suspects as regulators push toward formal oversight.
Pakistani authorities have arrested 34 suspects in a large international crypto fraud crackdown. The operation exposed unregulated investment schemes worth nearly $60 million. Officials confirmed that victims were targeted locally as well as overseas. Meanwhile, the action reflects a broader move of Pakistan towards the regulation of crypto in a structured manner and by licensed participants.
NCCIA Leads Nationwide Operation Against Fraud Network
The National Cyber Crime Investigation Agency coordinated the enforcement action in Karachi. Authorities held raids in DHA Phase 1 and Phase 6. Consequently, officers arrested 15 foreigners and 19 Pakistanis. The suspects were allegedly responsible for fraudulent crypto and foreign exchange platforms.
Related Reading: Pakistan Moves Toward $2 Billion Asset Tokenization with Binance Partnership | Live Bitcoin News
According to officials, the network operated under the name “International Fraud Group.” Says one investigator, the group operated fraudulent online investment portals. These platforms were being made legitimate through controlled activity and fake engagement. As a result of this, victims saw balances and reported profits displayed inside manipulated dashboards.
Interior Minister Mohsin Naqvi’s aide, Ataullah Tarar, has confirmed the arrests on public. Meanwhile, Sindh Home Minister Zia-ul-Hassan Lanjar explained the methods used. He said victims created logins on counterfeit platforms. Thereafter, scammers showed artificial profits to lure for repeated deposits.
Victims were first requested to invest about $5,000. After that, scammers requested additional payments for fake taxes and processing fees. After the receipt of funds, the communication ceased. Officials claimed that money was sent abroad, converted into crypto-currency and shipped across borders to try to avoid detection.
Authorities confiscated a large amount of technical equipment when they carried out these raids. Items included 37 computers and 40 mobile phones. Moreover, investigators retrieved more than 10,000 international SIM cards. Also, officials seized six illegal gateway exchange devices, used for cross-border communication.
Crypto Scam Details Raise Regulatory and Investor Awareness
Investigators said there was a strong dependence on the manipulation of social media by the network. Fake accounts were used to confer an artificial credibility inside the Telegram groups. By doing so, victims were convinced to interact with active investor communities. This tactic facilitated the rapid scaling of scamming operations across jurisdictions by the scammer.
Lanjar identified the operation as being an international cartel. He stressed the importance of the role of the illegal channel of communication. These tools offered an anonymous way of contact with foreign victims. Therefore, attempts to trace transactions had to be coordinated with several international bureaucracies.
Currently, there are 22 suspects still in judicial custody while investigations are still ongoing. Authorities have expected more arrests as digital evidence is analyzed. Meanwhile, forensic teams are tracing crypto wallets that are linked to overseas transfers. Officials confirmed requests for cooperation sent to foreign jurisdictions.
The Securities and Exchange Commission of Pakistan issued a public advisory following the arrests. The regulator encouraged investors to make sure that they check platforms through official channels. It put out warnings against unregistered crypto and forex schemes promising guaranteed returns. SECP stressed due diligence is key
This crackdown occurs as Pakistan shifts its stance on digital assets. Policymakers are considering frameworks for attracting licensed global crypto firms. Therefore, enforcement actions target eliminating bad actors before access for the entire market is broadened.
In sum, the arrests point to the increasing sophistication of financial criminals. However, they also reflect a bettering capacity of investigation in the country of Pakistan. As the adoption of crypto continues to increase, authorities seem to focus on striking a balance between innovation and protecting investors and ensuring systemic stability.
Source: https://www.livebitcoinnews.com/pakistani-authorities-arrest-34-in-major-crypto-scam-crackdown/
