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Pakistani authorities have dismantled a $60 million international cryptocurrency fraud operation, arresting 34 suspects accused of running fake trading platforms that targeted victims domestically and abroad.
The operation, led by Pakistan’s National Cyber Crime Investigation Agency, represents one of the country’s largest crypto enforcement actions as regulators simultaneously launch a formal licensing regime designed to separate legitimate operators from fraudulent schemes.
According to investigators, the Crypto scam network relied heavily on social media platforms to attract unsuspecting investors, promising unusually high and “guaranteed” returns — a classic red flag in crypto fraud cases.
Victims were initially shown fabricated trading dashboards and fake profit statements to build confidence.
Once trust was established, the fraudsters demanded additional fees under various pretexts, including account upgrades, tax clearances, or liquidity releases.
Law enforcement officials said that once victims committed larger sums, the Crypto scam network abruptly blocked access to accounts, siphoning off funds and cutting all communication.
Authorities revealed that proceeds from the Crypto scam network were funneled through multiple bank accounts to obscure their origin before being converted into digital assets.
From there, the funds were moved across borders using crypto wallets, highlighting how unregulated platforms can facilitate cross-border financial crimes when proper oversight is absent.
“This case reflects the evolving sophistication of financial crime networks that exploit digital assets and regulatory gaps,” an NCCIA official said during a press briefing.
The takedown of the Crypto scam network comes at a critical moment as Pakistan rolls out a formal licensing regime under the newly established Pakistan Virtual Assets Regulatory Authority (PVARA).
PVARA has been tasked with bringing crypto activities under strict supervision, with a focus on licensing, anti-money laundering (AML) compliance, and consumer protection.
According to Bilal Bin Saqib, chairman of PVARA, the authority’s mandate is designed to protect Pakistan’s estimated 40 million crypto users while eliminating illicit operators.
Our goal is to shut down illegal actors while supporting responsible innovation, Saqib said.
While cracking down on the Crypto scam network, Pakistan is simultaneously signaling openness to compliant global players.
PVARA has issued No Objection Certificates (NOCs) to Binance and HTX, allowing both exchanges to begin their licensing processes.
The firms are expected to integrate with Pakistan’s AML framework as part of a phased approval approach.
“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.
Beyond enforcement, Pakistan is positioning itself as a regional digital finance leader. The government recently signed a memorandum of understanding with Binance to explore tokenizing up to $2 billion in state-owned assets.
The initiative includes potential blockchain-based issuance of treasury bills and tokenization of gas, metals, and commodity reserves.
Pakistan has also announced plans to launch its first stablecoin while exploring a future central bank digital currency (CBDC).
We want to be at the forefront of this financial digital innovation, Saqib said. Why should we be at the tail-end when adoption is already here?
The collapse of the Crypto scam network sends a powerful message: Pakistan is no longer a safe haven for crypto fraudsters.
By pairing tough enforcement with clear regulatory pathways, authorities are drawing a sharp line between illicit actors and compliant innovators.
For investors and industry players alike, the message is unmistakable — the era of unchecked crypto fraud in Pakistan is coming to an end.
