Fake Crypto Investments Behind $60M Scam Uncovered by Pakistan Authorities
What Happened in the Karachi Raids?
Pakistan’s National Cyber Crime Investigation Agency has dismantled what authorities described as an “international cartel” tied to online investment fraud worth around $60 million. The operation led to the arrest of 15 foreign nationals and 19 Pakistani citizens during coordinated raids in Karachi’s Defence Housing Authority Phases 1 and 6.
Sindh Home Minister Zia-ul-Hassan Lanjar said the suspects ran large-scale online investment scams, using social media platforms and messaging apps to target victims inside Pakistan and abroad. Speaking at a press conference alongside NCCIA Additional Director Tariq Nawaz, Lanjar said the group relied on prolonged social engineering to build trust before introducing victims to fake cryptocurrency and schemes.
According to investigators, the raids recovered 37 computers, 40 mobile phones, more than 10,000 international SIM cards, and six illegal gateway platform devices. Authorities said the equipment was used to create fake social media profiles and Telegram accounts designed to simulate active communities and lure victims into private conversations.
Investor Takeaway
How Did the Scam Operate?
Lanjar said the fraud followed a familiar pattern. Victims were contacted through or messaging apps and gradually drawn into private groups that promoted trading opportunities with promised high returns. Over weeks or months, the suspects built credibility by presenting themselves as experienced traders or insiders.
Once trust was established, victims were asked to open accounts on fake trading platforms. These platforms displayed fabricated profit figures, creating the impression that investments were growing steadily. Authorities said the illusion of success was central to keeping victims engaged and encouraging larger deposits.
The minister explained that when a victim’s supposed investment approached around $5,000, the scheme escalated. Victims were asked to pay additional charges under various pretexts, including taxes, withdrawal fees, or account verification costs. later than the payments were made, access to the accounts was blocked, cutting off communication entirely.
Lanjar said the international SIM cards played a key role, allowing the suspects to receive one-time passwords and verification codes for Telegram and other online services. This made it easier to create and manage large numbers of accounts while masking the group’s physical location.
Where Did the Money Go?
Authorities said the scam relied on a cross-border financial structure. Funds were first collected in bank accounts based in the victims’ countries. From there, the money was converted into across borders to reach the main beneficiaries.
This layering made it harder to trace the flow of funds and delayed detection. Lanjar said technical and financial investigations were still ongoing, and further findings were expected as investigators mapped wallets, platforms, and transaction routes.
He added that the case involved nationals of two or three countries with which Pakistan maintains significant diplomatic ties. The foreign and interior ministries have raised the matter with those countries, though authorities have not disclosed the nationalities of the arrested foreign suspects.
Investor Takeaway
Why Does This Case Matter Now?
The arrests come as Pakistan views a sharp rise in cybercrime. Authorities have reported a 35% increase in cyber-related offenses in 2025, coinciding with broader debate over legalization frameworks. The timing has heightened scrutiny around online investment schemes that use crypto terminology to appear legitimate.
NCCIA Additional Director Tariq Nawaz said both local and foreign actors were involved and that victims included people inside Pakistan as well as overseas. He described the case as “the tip of the iceberg,” warning that online fraud does not respect borders and can scale rapidly through digital platforms.
A judicial magistrate has remanded 22 suspects, including eight foreign nationals, to prison. NCCIA has registered cases under multiple provisions of the Prevention of Electronic Crimes Act and the Pakistan Penal Code.
For authorities, the case highlights how modern fraud blends low-cost digital tools with psychological pressure rather than complex technical exploits. For users and investors, it reinforces a recurring lesson: promises of guaranteed returns, especially those tied to , remain one of the most common warning signs of online fraud.
