Key points
- Regulator alleges illegal collection of investor funds
- Investors were promised fixed returns
- Probe uncovered alleged Rs 446.6m fraud
- Case referred for further investigation
ISLAMABAD: Pakistan’s Securities and Exchange Commission (SECP) has taken action against Blink Capital Management over the alleged illegal collection of funds from investors and referred the matter to the Federal Investigation Agency (FIA) for further investigation.
According to the SECP, its investigation found that Blink Capital allegedly collected funds from investors by promising fixed returns and claiming the money would be invested in the Pakistan Mercantile Exchange (PMEX).
The regulator said its preliminary investigation uncovered an alleged fraud involving approximately Rs446.6 million ($1.6 million). Funds were allegedly deposited into accounts belonging to Blink Capital and members of its management.
The SECP also found indications that funds were allegedly transferred into the personal accounts of the company’s chief executive officer, directors and employees.
The regulator said the findings reveal the possible operation of a Ponzi scheme, in which funds collected from investors may have been handled contrary to the stated investment purpose.
Action was taken under Section 41B of the Securities and Exchange Commission of Pakistan Act, 1997, the regulator said.
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The SECP has approved referring the matter to the FIA for further investigation and to facilitate the resolution of complaints lodged by affected investors.
The case highlights the risks associated with investment schemes offering fixed or guaranteed returns and the importance of verifying the regulatory status of entities soliciting investment funds.
Pakistan Ponzi scheme alert
Pakistan’s regulators have repeatedly warned the public about Ponzi schemes, pyramid schemes, unauthorised deposit-taking and fraudulent online investment platforms promising unusually high or guaranteed returns. T
he Securities and Exchange Commission of Pakistan has said such schemes often use social media and other channels to attract investors, and has stressed that merely registering a company does not authorise it to collect public deposits or offer investment schemes.
In May 2025, the regulator also warned about unlicensed online trading platforms that used fake profit figures and, in some cases, allowed small initial withdrawals to build investors’ confidence before seeking larger deposits.
