The Securities and Exchange Commission of Pakistan (SECP) has referred Blink Capital Management to the Federal Investigation Agency (FIA) over an alleged Rs446.6 million Ponzi scheme involving unauthorized deposits and promises of fixed returns.
Blink Capital Management, a licensed futures broker and market maker of the Pakistan Mercantile Exchange (PMEX), allegedly offered investors returns ranging from 3.7% monthly to 48% annually, along with guaranteed repayment of principal.
The SECP investigation followed investor complaints. A total of 35 complaints involved Rs446.66 million, while financial audits traced Rs408.6 million transferred by 29 complainants into accounts linked to the company, its CEO, directors and associated staff, with substantial cash withdrawals also recorded.
The investigation found potential violations of the Companies Act, 2017, the Futures Market Act, 2016, and relevant futures brokerage regulations.
PMEX had earlier suspended the firm’s trading rights and frozen funds before Blink reportedly closed its offices and disabled its website.
The SECP has now referred the matter to the FIA for criminal investigation, asset recovery and redressal of investors’ grievances, while urging the public to remain cautious of schemes offering fixed or guaranteed returns.
