Pakistan decided to call out Binance after authorities discovered that some of the country's residents were fooled by a new massive crypto scam.
A person uses a cell phone to pay with Bitcoins during the Latin Bitcoin conference (LABITCONF) in San Salvador, on November 18, 2021. (Photo by Sthanly ESTRADA / AFP)
The Federal Investigation Agency (FIA) confirmed that it released a notice to inform Binance about the fraudulent activity in its platform.
"A relevant questionnaire has also been sent to [the] Binance Headquarters [in] the Cayman Islands and Binance US to explain the same," said the government agency in its handout.
FIA also asked Hamza Khan, the current general manager at Binance Pakistan, to coordinate with them regarding the malicious campaign involving cryptocurrency.
Pakistan Calls Out Binance Due to New Crypto Scam
According to Bitcoin.Com's latest report, the latest Binance crypto scam already stole around $100 million from the cryptocurrency exchange's consumers.
A visual representation of the digital Cryptocurrency, Bitcoin on October 23, 2017 in London, England. Cryptocurrencies including Bitcoin, Ethereum, and Lightcoin have seen unprecedented growth in 2017, despite remaining extremely volatile. While digital currencies across the board have divided opinion between financial institutions, and now have a market cap of around 175 Billion USD, the crypto sector coninues to grow, as it sees wider mainstreem adoption.
Also Read: Five Cryptocurrencies That Redditors Want to Invest in 2022 | From Solana to Binance Coin
Imran Riaz, FIA cybercrime wing's director, said that they had already launched a probe after investors complained about the fraudulent activity in Binance.
Based on the current investigation, the scammers used mobile applications to contact their victims. They offered investment opportunities around $100 up to $80,000, with the majority of the victims sending $2,000.
The FIA also confirmed that they identified 26 wallet addresses used for the crypto transactions in the latest scam. Right now, authorities want Binance to provide additional information and supporting documents about the apps used in the malicious activity.
The agency added that if the crypto exchange service fails to comply, it will be forced to ask SBP to implement financial penalties.
Avoiding Crypto Scams
PC Mag provided some tips on how you can avoid crypto scams. These include the following:
- Avoid providing personal details when asked by unknown contacts.
- If a government official, public figure, or other unknown individuals ask for direct payment, don't send money right away.
- Avoid patronizing investment promises that are too good to be true.
- Don't share your crypto wallet's private key.
- Always use 2FA in your cryptocurrency wallet.
- Check the links if the name of the page is correct. If the URL has letters replaced with numbers (Binance to B1nance), there's a high chance it is a scam.
In other news, Finalsite has fallen victim to a massive ransomware breach, leading to website outages. On the other hand, Google Docs is now being used in a phishing campaign.
For more news updates about the Binance scam and other security threats, always keep your tabs open here at TechTimes.
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Written by: Griffin Davis
