4 Pakistanis Charged in $41 Million US Crypto & Stock Fraud Ring

Federal authorities in the United States have charged four Pakistani nationals in connection with a massive $41 million securities fraud scheme. The accused include three brothers and a close childhood friend, who allegedly ran a sophisticated crypto and stock fraud operation combining insider trading with cybercrime.

The group allegedly used hacking, spoofed websites, and stolen data to manipulate US stock markets between 2020 and 2024.

The Shoukat Brothers: A Family Affair

The indictment centres on the Shoukat brothers, all dual citizens of the United States and Pakistan.

• Muhammad Saad Shoukat (33): The alleged ringleader. A PhD student in Immunology, Saad acted as the primary contact for illicit information.
• Muhammad Arham Shoukat (35): The “tech guy”. Residing in Islamabad and Malaysia, Arham allegedly handled the technical aspects, including hacking and website spoofing.
• Muhammad Shahwaiz Shoukat (36): The financier. Based in Amsterdam, Shahwaiz allegedly managed funds and traded using accounts belonging to his ex-wife.
• Daniyal “Dan” Khan (33): Their friend and a dual UK/Pakistani citizen

This group allegedly executed trades that generated millions in illegal profits.

Inside Crypto & Stock Fraud Schemes

The prosecution outlines three distinct fraud schemes masterminded by the group.

1. The Insider Trading Ring

Saad Shoukat allegedly sourced Material Non-Public Information (MNPI) from an insider at a San Francisco investment bank. He then shared these tips with his brothers and Khan. The group traded aggressively ahead of major acquisition announcements for companies like “GBT Therapeutics” and “Oak Street Health”.

Alleged Profits for Pakistani Defendants (Selected Deals):

2. Hacking & Market Manipulation

When insider tips were unavailable, the brothers allegedly manufactured their own market-moving events.

• The Fake Cancer Data:
  Arham and Saad allegedly hacked a patient’s account on a breast cancer forum. They posted falsified clinical data for “Olema Pharmaceuticals”, causing the stock to spike artificially before they sold their shares.
• The Fake Acquisition:
  For “Opiant Pharmaceuticals”, Arham allegedly hired a hacker to build a spoofed website (opiant.co.uk). The group used this site to trick a PR firm into publishing a fake press release announcing a $225 million buyout. The stock jumped 29%, and the group cashed out immediately.

Severe Legal Consequences: Crypto & Stock Fraud

The four men face extraordinary prison exposure due to the sheer number of charges, which include securities fraud, wire fraud, and conspiracy.

Maximum Potential Sentences:

This crypto and stock fraud case represents a significant crackdown on cross-border financial crime involving Pakistani nationals. If convicted, the brothers could face centuries behind bars.