Non-bailable arrest warrant of Waqar Zaka in cryptocurrency scam

Non-bailable arrest warrant issued for Waqar Zaka in cryptocurrency scam case

KARACHI (Web Desk) – A Karachi court issued a non-bailable arrest warrant for TV host and now a social media influencer Waqar Zaka in a case pertaining to a Rs86 million cryptocurrency scam.

Earlier this year, the Federal Investigation Agency (FIA) had booked Zaka in connection with an inquiry into alleged virtual currency-related transactions from his bank account. 

On Thursday, when the matter was taken up by the judicial magistrate, the former TV host failed to appear in court. Subsequently, the judge directed the office to issue a non-bailable arrest for Zaka — who is allegedly absconding to avoid his arrest in the case — and adjourned the hearing till Jan 5.

The FIA has said that an inquiry was initiated against Zaka upon the receipt of a source report initiated by the Financial Monitoring Unit (FMU). It stated that during the last three years the aggregated credits of Rs86.1 million and debt of Rs87.1 million were observed in his bank account, adding that the bank’s statement revealed that the funds were being credited into the accounts through foreign remittance and clearing of cheques, which were subsequently debited through internal transfer to the accounts of his different family members.

It went on to say that Zaka used social media for charity purposes and international crowdfunding — through which he received Rs6.8 million. The FIA added that the money was withdrawn through a pay order and interbank fund transfer.

“Whereas, the multiple news, blogs, and videos were found on a public database which transpires involvement of accused Waqar Zaka into cryptocurrency/virtual assets”, alleged the agency.

“During the inquiry, Bitcoin/cryptocurrency-related posts were found on his Twitter account, the accused also promotes cryptocurrency like Bitcoin”, it further alleged.

The agency maintained that after examining the report, secured documents such as copies of the bank records and institutions, and oral evidence, it had been substantiated that the accused — in violation of banking rules and regulations and prescribed law of the country — fraudulently and dishonestly committed the offences of virtual assets/cryptocurrency trading and facilitating to use virtual assets for transferring funds and generating profits.

It added that after the inquiry was initiated and the accused was summoned, he initiated false propaganda against the institutions of the state and was found involved in illegal activities through social media by putting up objectionable material/remarks against the institutions, threats to the government officials and provoking the public against the state.

He was allegedly found guilty of committing the offences punishable under the Pakistan Electronic Crimes Act, 2016, Pakistan Penal Code, Anti-Money Laundering Act 2020 and Foreign Exchange Regulation Act 1947, FIA added.