Cryptocurrency Fraud in Pakistan | Qrypto Understandingz

In past, the global popularity of cryptocurrencies has been increased that brought both opportunities and risks in various fields of economy. Pakistan also has been a part of growing interest in many cryptocurrencies like Bitcoin, Ripple, Pie and many others. However, this digital-currency which is also given rise to some concerning issues in Pakistan like cryptocurrency fraud in Pakistan. Let’s try to focus on of cryptocurrency fraud in Pakistan by understanding cryptocurrency scam types, their impacts, and ways to stay secure in this evolving financial landscape.

Why people take interest in Cryptocurrency?

In the cryptocurrency world, with its decentralized nature and its potential of high profits and returns, has captured the interest and intension of people from worldwide for earning money in easy and short way. In Pakistan, a lot of people has also shown a rich interest in this digital financial (Defi) revolution for getting financial benefits. As Pakistanis showing increasing interest in various cryptocurrencies types for getting benefits which also increase the chances of cryptocurrency scams in Pakistan.

Understanding Cryptocurrency and Its Popularity in Pakistan

Cryptocurrencies are digital way of earning money. Cryptocurrency’s knowledge is increasing worldwide day by day. In Pakistan the value and knowledge of cryptocurrency increases day by day but the trend of cryptocurrency is not so much common among Pakistani’s. There is no doubt world is getting benefit from cryptocurrencies and also there are lot of cryptocurrency fraud and scams that people facing from many countries in every year. Fear of cryptocurrency scams are very common in Pakistan because Pakistani people has already faced cryptocurrency fraud in 2018.

1st cryptocurrency was introduced to the world in 2009, which was Bitcoin. Bitcoin is now the most valuable cryptocurrency in the world. Beside Bitcoin there are lot of cryptocurrencies introduced which have different values and owner some of them used as scams such as Ponzi Schemes. People from all over the world had lost huge amount of money from these cryptocurrency frauds. Some of these scams are so huge that people lost million of dollars from these scams.

Why Cryptocurrency is ban in Pakistan?

After 2015 the trend of cryptocurrency is increase speedily in Pakistan. People were showing a lot interest in these modern currencies for earning easy money. But scams in this field is also common, first major cryptocurrency fraud in Pakistan was occurred in 2018, which was about 100 million dollars. This was a huge amount and about 37000 people got scammed by this fraud. Mostly people belong to Punjab had invested in between 100$ to 80000$. On average every person invested 2000$ to these currencies.

The scammers promised to multiply the money of investors in short time. Scammers used many apps for fraud such as MCX, FXCOPY, HFC, OKIMINI etc. A one of major reason why people trusted them and invest their money was that the scammers used Binance Wallet which is the most trusted cryptocurrency exchange wallet and platform worldwide. Scammers used 26 wallets from Binance and with proper planning they made a big cryptocurrency fraud in Pakistan.

How they Scammed by Cryptocurrency?

They trapped people by fake promising of multiplying their money. As client agreed for investment they add them to their Telegram group, where they gave advice for investment in Cryptocurrency. In start people got some benefits, by this they gained their trust. Then they convinced investors to transfer their money in their apps. After transferring money from Binance to scammers apps, investors application would crash and they don’t have access to their Funds.

Role of State bank and FIA in banning Cryptocurrency:

After this cryptocurrency fraud in Pakistan, State Bank of Pakistan was first who recommended about banning of Cryptocurrency in Pakistan. The main reason for this idea was its decentralized nature as it was the main barrier for approaching those scammers. Same recommendation was given by a committee formed by Sindh High Court, which gave advice of full ban of cryptocurrency in Pakistan.

As this case came to the court from 2018 to 2019, many central banks oppose cryptocurrency because of its untraceable transaction ways. In 2022, Pakistan authorities completely banned cryptocurrency. Majority of people were in favor of this decision, but some are opposing it. The main name which strongly oppose banning of cryptocurrency in Pakistan was Waqar Zaka. Waqar Zaka was in favor of regulating cryptocurrency in Pakistan believing proper regulation of cryptocurrency will help to keep away from the cryptocurrency fraud in Pakistan.

FIA approached Binance and ask for their support to reach those wallets which were used in the fraud. So that the criminals could be caught. Binance agreed for its cooperation and nominated the investigators for fraud investigation.