The digital payments sector in Pakistan is facing an unprecedented crisis. Law enforcement agencies have officially uncovered a massive financial syndicate operating through mobile wallets. Consequently, legitimate businesses are now becoming collateral damage. Just three days ago, TechJuice broke the exclusive story that VEON’s JazzCash abruptly closed over 100 aggregator accounts following intense scrutiny from the Federal Investigation Agency (FIA) over online gambling. Moreover, we also reported on October 5 that Easypaisa-linked transactions are facing massive settlement delays across the industry.
Now, further investigations into this issue have concluded. All the new information has finally surfaced, revealing the staggering scale of the illicit operations.
The Rs. 120 Billion Bombshell & How the Syndicate Operated
In September 2026, the FIA’s Faisalabad branch launched a comprehensive probe into suspicious digital transactions. The investigators struck gold. They traced a jaw-dropping Rs. 119.93 billion (roughly $433.5 million) routed directly through digital payment channels. The network did not rely on complex offshore banks. Instead, criminals exploited local branchless banking systems. In fact, a staggering Rs. 8.586 billion moved through just five collection accounts via 10.5 million individual transactions.
Following these discoveries, FIA Faisalabad officially filed an FIR against eight suspects under the Foreign Exchange Regulation Act and the Pakistan Penal Code. Two primary suspects, Muhammad Zeeshan and Muhammad Hamza, are already in police custody.
The criminals built a highly sophisticated network. The FIA identified 11 single-member shell companies that acted as the main conduits for the illicit funds. Specifically, they funneled money for six major online gambling platforms:
- U7777 Game
- TD777
- Game89
- EPIWIN
- B9 Game
- S9 Game (Teen Patti, Roulette, Ludo, Mines, and Blackjack)
To evade detection, the operators explicitly disguised betting payments as standard peer-to-peer (P2P) or business-to-business (B2B) transfers. Furthermore, the funds frequently moved through bank accounts, mobile wallets, and cryptocurrency networks, particularly USDT. Ultimately, the FIA noted clear indicators of digital hundi/hawala operations and complex financial layering designed to thoroughly conceal the money trail.
JazzCash & Easypaisa Bear the Brunt of FIA Online Gambling Crackdown
The fallout has hit Pakistan’s top fintech players hard. JazzCash remains the primary focus of the crackdown. The company has completely shut down or suspended over 100 aggregator accounts. Some were closed directly via FIA notices, while others were flagged during internal panic reviews. Because these aggregator channels handled massive transaction volumes, the shutdown will significantly damage JazzCash’s upcoming annual earnings.
Furthermore, the pressure is mounting internally. Sources privy to the investigation recently confirmed to TechJuice that investigators are now summoning JazzCash employees. Specifically, authorities are calling them in to record official statements regarding how these Single Member Company (SMC) accounts were opened without fulfilling the proper formalities in the first place.
TechJuice reached out to JazzCash for a formal statement regarding these massive account closures. However, the company gave no response at all.
Meanwhile, Easypaisa is also feeling the heat. While everyday P2P transfers still work, merchant settlement channels are currently facing severe delays. Six major payment firms, SWICH, Simpaisa, ajarPay, RapidPay, Zero Technologies, and Finza Tech, are all dealing with frozen or delayed settlements. Additionally, international payment processor dLocal is actively investigating issues tied to Easypaisa. Despite the chaos, Easypaisa has refused to comment publicly on the ongoing crisis.
The Domino Effect of Stricter Regulations
This crackdown is not a sudden ambush. In May 2026, the State Bank of Pakistan (SBP) rolled out a strict new regulatory framework for payment intermediaries and aggregators. The central bank demanded tighter documentation, stricter foreign exchange compliance, and robust monitoring of financial flows. Therefore, the September FIA probe was simply the hammer dropping on platforms that failed to adapt.
Historically, authorities struggled to stop these financial flows. Back in September 2025, an Islamabad resident petitioned the Islamabad High Court. The petition accused platforms like Betway, 1xBet, and Bet365 of using JazzCash, Easypaisa, and SadaPay to process gambling payments. It also highlighted the failure of the Pakistan Telecommunication Authority (PTA), the FIA, and the SBP to block these illegal flows.
At that time, official actions mostly focused on blocking URLs. For instance, the Cabinet Division disclosed in August 2025 that the PTA blocked 184 betting websites. More recently, authorities blocked another 46 apps linked to gambling, unregulated forex, and data-harvesting. However, the PTA can only block content. It lacks the authority to prosecute financial crimes.
Now, regulators and law enforcement agencies are no longer just chasing websites. They are actively targeting the payment gateways. Consequently, mobile wallet intermediaries have officially become the frontline in Pakistan’s war against illicit financial networks.
