Waqar Zaka, a television broadcaster, and social media activist was the recipient of a non-bailable arrest warrant issued by a Karachi court in a case involving an alleged scam involving Rs. 86 million worth of cryptocurrency.
Waqar did not show up in court on Thursday when Mukesh Kumar, a judicial magistrate, took the case.
As a result, the judge ordered that Zaka be given a non-bailable arrest warrant and adjourned the case to January 5.
The former TV anchor was detained earlier this year as part of a probe into alleged virtual currency-related transactions from his bank account by the Federal Investigation Agency’s (FIA) cybercrime division.
Through Shehryar Ahmed Khan, the assistant director of the FIA’s cybercrime wing, the case was brought against Waqar Zaka based on a complaint from the government.
He claimed that after receiving a source report from the Financial Monitoring Unit (FMU) in August 2020, the social media activist was questioned.
Additionally, it is claimed that information gathered by the FIA from the relevant banks showed that during the course of the previous three years, his bank account showed an aggregate debt of Rs. 87.1 million and a credit of Rs. 86.1 million.
The bank statement also showed that money that was credited into his accounts through international remittances (interbank fund transfers) was simultaneously debited to other family members’ accounts through internal transfers.
The FIA further disclosed that Waqar utilized social media to raise money for charities and from abroad, via which he was given Rs 6.8 million.
Through an interbank fund transfer or a pay order, the funds were taken out of the accounts.
The agency alleged that “The multiple videos, news, and blogs were found on online public platforms that show Waqar’s involvement in cryptocurrency or virtual assets”.
Additionally, it was claimed that the defendant had promoted cryptocurrencies like Bitcoin online, as evidenced by the messages and videos he had posted to his Twitter and YouTube accounts.
The agency claimed that after looking over documents including copies of bank records, reports, and oral testimony, it was confirmed that Zaka had broken both the country’s established legislation and banking laws and regulations.
He had committed the crimes of trading in virtual assets and cryptocurrencies and facilitating the use of virtual assets for money transfers and profit-making on the basis of fraud and dishonesty.
The State Bank of Pakistan (SBP) did not confirm virtual assets as legal tender to keep and transfer money, the agency officials further stated, adding that, “The central bank had also issued a restrain against the risk caused due to trade in cryptocurrencies and cautioned the public to not use such currencies for trading purpose”.
They added that the accused was called for engaging in criminal activities on social media sites like Facebook and Twitter by publishing offensive content against state institutions, making threats against government figures, and stirring up discontent with the government.
According to FIA, he was allegedly found guilty of violating the Pakistan Electronic Crimes Act (PECA), 2016, Pakistan Penal Code (PPC), Anti-Money Laundering Act 2020, and the Foreign Exchange Regulation Act of 1947, all of which carry significant prison sentences.
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