“We want the brothers charged with fraud, theft, and potentially money laundering. For a first offense, they may receive 10–15 years”.

Some, like Africrypt's lawyer, believe charging the Cajee brothers with a crime is improbable. They allege a majority of investors agreed to a deal before being compensated that essentially gave the mystery investor ownership of all Afrcrypt claims.

Investors in Africrypt have previously agreed to conditions presented by Pennython Project Management LLC, a Dubai-based corporation. Investors would get 65 cents for every dollar invested.

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A few of the investors Pierce represents were compensated, but he stressed that investors “are still going through with the criminal case as there is still money lost.”

Related: Directors of collapsed ponzi scheme, Africrypt, set to testify virtually.

Binance receives notice from Pakistan after the country lost millions ($) in a crypto scam

Pakistan's Federal Investigation Agency (FIA) claims to have exposed a crypto investment fraud that cost Pakistanis about $100 million. Imran Riaz, head of the FIA's cybercrime division, claimed the organizers utilized cryptocurrencies. Local media reported Riaz saying:

We started an investigation after receiving reports of a billion-rupee scam involving nine internet apps.

In all, between $100 and $80,000 was provided, or an average of $2,000 per individual. Investors were advised to open a Binance account and transfer funds from the Binance wallet to the apps' accounts. On Dec. 20, users reported to authorities that a dozen applications had abruptly ceased operating.

During the investigation, it was discovered that the fake accounts of various apps were associated with Binance wallets », authorities said. Each had 5,000 regulars. The FIA has asked Binance's Pakistani agent, Hamza Khan, to appear in person on Jan. 10.

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As reported by the Express Tribune and others, the FIA Cyber Crime Sindh has summoned Hamza Khan, General Manager/ Growth Analyst at Binance Pakistan (Crypto Currency Exchange), to clarify his viewpoint on the connectivity of fraudulent online investment mobile apps with Binance. In a news statement, the agency said it issued a questionnaire to Binance Cayman Islands and Binance US to explain.

Pakistani crypto transactions to be monitored

The FIA believes it has discovered 26 Binance wallet addresses used to transfer funds.

According to the agency, it has written to Binance Holdings Limited to seek the specifics of these blockchain wallet accounts, as well as information regarding their integration with the currency trading platform.

Noting Binance as the “largest unregulated virtual currency exchange” where Pakistanis have invested millions, the FIA cautions that non-compliance might result in financial penalties from the State Bank of Pakistan (SBP). It is now actively monitoring Pakistani trades on the exchange.

Related: How to spot a Bitcoin scam

Members of the plan were joined to numerous groups on the popular messaging app Telegram, sending indications on bitcoin price variations. The FIA is suing social media influencers who promoted the applications and blocking any bank accounts tied to the scheme.

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The FBI blocked over 1,000 crypto dealers' bank accounts and cards in December. The SBP published a circular in April 2018 prohibiting the acquisition and selling of cryptocurrency. Despite the restriction, Pakistanis have reportedly invested $20 billion in crypto assets. The government has been urged to regulate similar transactions.