Digital Deception Exposed: NCCIA Breaks $60M Crypto Scam
In a major breakthrough for cybercrime enforcement in Pakistan, the National Cyber Crime Investigation Agency (NCCIA) has dismantled an international cryptocurrency and foreign exchange trading fraud network valued at an estimated $60 million, resulting in the arrest of 15 foreign nationals and 19 Pakistani citizens during coordinated raids in Karachi.
According to Sindh Home Minister Zia-ul-Hassan Lanjar, the operation—conducted jointly by NCCIA and other intelligence and law enforcement agencies—targeted locations in Defence Housing Authority (DHA) Phases 1 and 6, where the suspects were running large-scale online investment scams through social media and encrypted messaging platforms.
Source: Pakistan Today
How the Crypto & Forex Scam Operated
Officials revealed that the accused used fake social media profiles, Telegram groups, and manipulated engagement metrics to lure victims with promises of high returns from cryptocurrency and forex trading. Victims were initially shown fabricated profits to build trust.
Once a victim’s notional investment reached approximately $5,000, the scammers demanded additional payments under various pretexts—such as taxes, unlocking fees, or account upgrades. Shortly after these payments were made, victims’ accounts were blocked, and all communication ceased.
Seized Equipment and Technical Infrastructure
During the raids, authorities seized:
- 37 computers
- 40 mobile phones
- Over 10,000 international SIM cards
- Six illegal gateway exchange devices
According to NCCIA officials, this infrastructure was used to:
- Create and manage fake online identities
- Generate artificial engagement and credibility
- Receive one-time passwords (OTPs) and verification codes
- Route communications and funds across borders
Funds collected from victims were deposited into bank accounts in targeted countries, converted into cryptocurrency, and then transferred internationally to the main beneficiaries—illustrating a classic cross-border crypto money laundering model.
Legal Action and Applicable Laws
The NCCIA has registered multiple cases against the accused under:
- Prevention of Electronic Crimes Act (PECA)
- Pakistan Penal Code (PPC)
Authorities confirmed that technical, financial, and forensic investigations are ongoing, with further arrests and international cooperation expected. The case reportedly involves nationals of two or three countries with which Pakistan maintains important diplomatic relations, and the matter has been formally taken up with relevant foreign authorities.
Legal Commentary: Why This Case Matters
From a crypto-law perspective, this case represents a critical enforcement milestone for Pakistan:
- Recognition of Crypto-Enabled Financial Crime
The investigation confirms that cryptocurrency is increasingly used as a laundering and exit mechanism in organized fraud. - Importance of Early Legal Intervention
Victims who reported promptly and pursued structured complaints enabled authorities to act before assets fully disappeared. - Role of Proper Legal Drafting and Guidance
Well-prepared complaints—supported by transaction data, communication records, and legal framing—are essential for triggering regulatory and criminal action. - Cross-Border Enforcement Is Now a Reality
The case demonstrates Pakistan’s growing capability to coordinate cybercrime enforcement involving foreign nationals and international fund flows.
A Warning to Victims and the Public
This case also serves as a clear warning:
- Guaranteed crypto or forex returns are almost always fraudulent
- Social media and Telegram-based “investment managers” are high-risk
- Recovery requires lawyers, regulators, and forensic experts—not AI tools or informal advice
AI guidance can help explain concepts, but only licensed crypto lawyers can:
- Draft legally effective complaints
- Engage regulators and law enforcement
- Coordinate cross-border recovery efforts
- Protect victims from secondary “recovery scams”
The information provided in this article is for general informational purposes only and does not constitute legal or financial advice.
Author & Crypto Consultant
Shahid Jamal Tubrazy (Crypto & Fintech Law Consultant)
Shahid Jamal Tubrazy, a certified top expert in Crypto Law from Duke University, is a leading authority in the cryptocurrency and blockchain space. As a seasoned Fintech lawyer, he offers a full spectrum of services, including licensing, legal guidance for ICOs, STOs, DeFi, and DAOs, as well as specialized expertise in crypto mediation, negotiation, and mergers and acquisitions. With a proven track record and published works on Blockchain Regulation and Cryptocurrency Laws, Shahid provides unparalleled insights into the complexities of the fintech world, ensuring compliance and strategic success. 🌐💼 #CryptoLaw #Fintech #Blockchain #LicenseServices #CryptoMediator #MergersAndAcquisitions #CryptoCompliance #FrozenAssetsrecovery.
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