In a case involving dubious Rs173 million cryptocurrency-related transactions, a local court issued a non-bailable arrest warrant for Waqar Zaka, a television broadcaster and social media activist, according to The News on Friday.
The Federal Investigation Agency's (FIA) cybercrime circle had detained Zaka in January of this year for allegedly running two accounts for the trade of cryptocurrency and virtual assets.
Judicial Magistrate (East) Mukesh Kumar filed the lawsuit on Thursday against Zaka, who is leading the push for virtual currencies to be recognised as legal cash in Pakistan.
The magistrate postponed the hearing to January 5, 2023 and instructed the FIA prosecutor to make a report about the execution of the warrant on the following date.
The Case
Shehryar Ahmed Khan, assistant director of the FIA cybercrime circle, who made the complaint on behalf of the state, revealed that an investigation against Zaka was started after they received a source report from the Financial Monitoring Unit (FMU) in August 2020.
He said that according to information gathered by the FIA from the relevant banks, transactions totaling more than Rs173 million were seen in his bank accounts over the course of the previous three years, including an overall credit of Rs86.1 million and debt of Rs87.1 million.
According to the accounts' statement, money was sent internationally (through interbank fund transfers) and cleared checks were used to credit these accounts, and then money was transferred within to debit the accounts of his family members, he noted.
According to the FIA, Zaka utilised social media to raise money for charities and from abroad, receiving Rs6.8 million that was taken out by pay order and interbank cash transfer.
"Numerous news articles, blogs, and videos were discovered in a public database which reveal accused Waqar Zaka's participation in cryptocurrency/virtual assets," it alleged. "Bitcoin and cryptocurrency-related messages were discovered on his Twitter account throughout the investigation. The accused also advertises cryptocurrencies like Bitcoin through YouTube channels."
The State Bank of Pakistan (SBP), according to the agency, does not recognise virtual assets as legal cash to hold and transfer value. The central bank has also issued a warning against the risks associated with dealing in cryptocurrencies and has outlawed the public from doing so.
It stated that after looking over the report, secured documents like copies of bank records and institutions, and oral testimony, it had been established that the accused had, in violation of banking rules and regulations and established law of the country, engaged in the illegal trading of virtual assets and helped facilitate the use of virtual assets for transferring money and making money.
119.578 SRY