Pakistani Authorities Dismantle $60 Million Global Crypto Scam Network

 

Key Takeaways

·         Pakistani law enforcement shut down an alleged $60 million global crypto and forex scam.

·         Dozens of suspects were arrested in coordinated raids in Karachi.

·         Authorities seized computers, phones, SIM cards, and illegal telecom equipment.

·         Investigations are ongoing with international cooperation expected.

Strong Lead

Pakistani authorities have dismantled a sophisticated global crypto scam network valued at roughly $60 million, arresting dozens of suspects in Karachi in what officials described as one of the country’s largest cyber-fraud enforcement actions to date. The case underscores the growing scale of cross-border crypto-related scams and the increasing focus of Pakistani law enforcement on digital financial crime.

Background and Context

Online investment fraud has surged across South Asia over the past several years, often exploiting retail investors’ familiarity with cryptocurrencies and foreign exchange trading. Pakistan, where crypto trading exists largely outside a comprehensive regulatory framework, has become both a target and an operational hub for such schemes due to low operating costs, widespread internet access, and the availability of informal telecom infrastructure.

To address this, Pakistani authorities have expanded dedicated cybercrime enforcement capabilities, focusing on online fraud, digital impersonation, and illegal financial networks operating across borders.

Key Developments

According to officials, the operation was carried out following months of intelligence gathering and surveillance. Law enforcement raided multiple locations in Karachi, including residential and commercial properties allegedly being used as scam call centers and operational offices.

Authorities arrested 34 suspects, including 15 foreign nationals and several women. Investigators said the group operated an organized fraud ring targeting victims in multiple countries through social media platforms and encrypted messaging applications.

During the raids, officers seized dozens of desktop computers and laptops, mobile phones, hard drives, and more than 10,000 SIM cards. Officials also confiscated illegal voice-over-internet gateway devices, which were allegedly used to mask call origins and impersonate foreign numbers while contacting victims abroad.

How the Scam Worked

Investigators said the network relied on a method commonly referred to as “account grooming.” Victims were first approached online and encouraged to invest small sums through fake crypto or forex trading platforms. These platforms displayed fabricated profits to build credibility and trust.

Once victims attempted to withdraw funds, they were asked to pay additional charges such as taxes, service fees, or liquidity costs. After these payments were made, communication was cut off, and accounts were frozen or deleted. Funds were allegedly laundered through a mix of traditional banking channels and cryptocurrency transfers to obscure their origin.

Authorities said the estimated $60 million figure reflects both confirmed losses and projected amounts based on transaction records recovered during the raids.

Enforcement and Legal Proceedings

Officials stated that suspects are being charged under Pakistan’s electronic crimes and financial fraud laws. Several individuals have been placed in physical remand for further interrogation, while others remain under investigation pending forensic analysis of seized devices.

Law enforcement agencies have begun tracing digital wallets and transaction flows to identify additional accomplices and recover stolen funds where possible. Officials cautioned that asset recovery in cross-border crypto cases is complex and time-consuming.

Market and Industry Impact

There was no immediate or measurable impact on cryptocurrency markets following the announcement, and authorities did not link the operation to any specific exchange or regulated financial institution.

However, industry observers say the case highlights persistent structural risks in unregulated or lightly regulated crypto environments, particularly where fake platforms and impersonation tactics are involved. While enforcement actions may disrupt individual networks, analysts note that similar operations often re-emerge quickly under new identities.

What Happens Next

Investigators said the case remains active and is expected to expand beyond Pakistan. Authorities are coordinating with foreign law enforcement agencies to share evidence and pursue suspects believed to be operating overseas.

Officials also urged victims, both domestic and international, to come forward with documentation to support ongoing prosecutions. Additional arrests have not been ruled out as digital forensics and financial tracing continue.