🪓 Pakistan🇵🇰: payment network linked to illegal gambling uncovered, with reported transactions exceeding USD 433 million

🪓 Pakistan🇵🇰: payment network linked to illegal gambling uncovered, with reported transactions exceeding USD 433 million

Major local fintech companies Easypaisa and JazzCash are implicated in the case.

➡ The Federal Investigation Agency (FIA) in Faisalabad uncovered a network that managed to route USD 433.5 million directly through digital payment channels. The funds were intended for six gambling platforms: U7777 Game, TD777, Game89, EPIWIN, B9 Game and S9 Game.

➡ The network used 11 front accounts. Operators disguised betting payments as standard P2P and B2B transfers. Investigators identified clear signs of illegal transactions involving the informal money transfer systems known as hundi/hawala. Two of the eight suspects have been arrested.

➡ The FIA ordered leading Pakistani fintech companies to close aggregator accounts implicated in the case. JazzCash was forced to close more than 100 accounts, which is expected to significantly reduce the company's annual profits. It was also required to explain how the individuals involved had managed to open these accounts in violation of regulatory requirements. The situation involving Easypaisa is even more significant: investigators discovered that representatives of the fintech company had taken stakes alongside the main suspects.

➡ How the scheme worked: once the funds reached the “corporate” accounts, they were transferred through a network of accounts. Nearly 10.5 million transactions, totaling approximately USD 31 million, were processed through just five accounts. The money was transferred to swap accounts at Mobilink Microfinance Bank Limited (MMBL) and then to accounts at Faysal Bank Limited🇵🇰 and Dubai Islamic Bank🇦🇪. From there, through trading and construction companies in the north of the country, the funds allegedly entered digital hawala/hundi networks and schemes involving the USDT cryptocurrency. The case also involves a Chinese intermediary known by the pseudonym “Michael”🇨🇳, who was reportedly connected to the gambling platforms.

✔️ Context: in May 2026, the State Bank of Pakistan (SBP) tightened the regulatory framework governing payment aggregators and intermediaries. Previously, efforts to combat illegal gambling focused primarily on blocking content. Law enforcement agencies now also have access to data on payment gateway activity.

The investigation highlights the risks of using payment infrastructure to channel funds linked to illegal gambling.

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