Pakistan Busts $60M Cross-Border Crypto Investment Scam
Pakistan’s National Cyber Crime Investigation Agency (NCCIA) dismantled a cross-border crypto and forex investment fraud ring in Karachi that allegedly stole about $60 million. Authorities seized 37 computers, 40 mobile phones, more than 10,000 international SIM cards and six illicit payment-gateway devices. The network used social engineering on social media and messaging apps, impersonating traders or insiders to recruit victims onto fake trading platforms that displayed forged profit data. Victims typically deposited around $5,000, then were pressured to pay additional "taxes", withdrawal or verification fees; after payments accounts were frozen and communication ceased. Funds were routed to overseas bank accounts and converted into cryptocurrencies for cross-border transfers. In Phase 1 of the operation, police arrested multiple suspects; 22 remain detained, including several foreign nationals. Cases have been registered under the Prevention of Electronic Crimes Act and sections of the Pakistan Penal Code. The investigation remains active and involves coordination with foreign jurisdictions. For traders: the bust highlights persistent crypto scam risks, the use of illicit payment gateways and SIM-card networks to bypass controls, and the importance of due diligence when engaging with trading platforms or unsolicited investment offers.
Bearish
This enforcement action is likely bearish for market sentiment around the specific cryptocurrencies used by the scammers and for risky retail exposure generally. Although the bust does not target a single listed token, publicized large-scale crypto frauds raise regulatory scrutiny and can reduce retail trust, leading to short-term selling pressure on crypto assets associated with illicit flows. Traders may see increased volatility as exchanges and payment services tighten onboarding and withdrawal controls. In the short term, assets perceived as privacy-oriented or commonly used for laundering may underperform. In the longer term, enforcement can be neutral-to-positive if it leads to clearer regulation and safer market infrastructure, but near-term price action is expected to be negative driven by risk-off behavior.