Pakistan’s Federal Investigation Agency has created a dedicated cryptocurrency investigation unit as the country builds a broader system for regulating and policing digital assets.

The new unit sits within the FIA’s National Command and Control Centre, or NC3, and will investigate the suspected use of cryptocurrencies in money laundering, terrorism financing and other crimes, Dawn reported. The move separates criminal investigations from the work of the Pakistan Virtual Assets Regulatory Authority, which oversees the country’s regulated digital asset sector.

Muhammad Athar Waheed, director of the FIA’s Counter-Terrorism Wing, said PVARA remains responsible for digital asset regulation, while the FIA will focus on possible criminal activity involving cryptocurrencies. He also called for the National Cyber Crime Investigation Agency and the Anti-Narcotics Force to create similar specialist teams for cybercrime and drug-related cases involving digital assets.

FIA builds dedicated capacity for crypto investigations

The cryptocurrency investigation team forms part of a wider upgrade at the FIA’s NC3. The command centre brings several investigative and monitoring functions onto one platform. These include anti-money laundering teams, border monitoring, intelligence coordination, cyber patrols, dark web investigations and cooperation with Interpol.

Officials said the system allows the agency to coordinate cases across its offices and monitor investigations in real time. The FIA is also introducing new rules aimed at completing inquiries within set timeframes. One official said “many new things are in the pipeline” as the agency continues expanding its investigative capacity.

The agency’s move comes as governments and law enforcement bodies worldwide increase their focus on how criminals move funds through digital assets. Crypto transactions remain visible on public blockchains in many cases, but investigators often need specialist tools and training to trace funds across wallets, exchanges, bridges and different networks.

In Pakistan, the FIA’s new unit gives law enforcement a team focused specifically on that work. Meanwhile, PVARA will continue handling licensing and supervision rather than criminal investigations. This creates separate roles for market regulation and law enforcement as Pakistan develops its formal crypto framework.

Pakistan expands its regulated digital asset market

The launch follows months of changes to Pakistan’s cryptocurrency rules. The Virtual Assets Act 2026 established PVARA as the federal authority responsible for supervising virtual asset service providers, including exchanges, custodians, brokers and token issuers. The regulator has also been working on operating standards for companies seeking to serve local users.

As crypto.news previously reported, the State Bank of Pakistan also allowed regulated banks to provide accounts to PVARA-licensed digital asset companies in April. Banks must verify licences, monitor accounts and keep customer funds separate from company money. They must also continue following anti-money laundering and counterterrorism financing requirements.

The banking decision followed Pakistan’s earlier effort to bring international trading platforms into a licensed market. As previously reported, PVARA invited global exchanges and other virtual asset service providers to apply for approval to operate in the country. Applicants must provide information on compliance records, security systems, financial details and local business plans.

These regulatory steps have created a formal route for licensed crypto activity while the FIA builds tools to investigate suspected crimes. The two systems serve different functions: PVARA sets and enforces rules for registered businesses, while law enforcement investigates possible violations of criminal law.

Stablecoins and Bitcoin remain part of Pakistan’s plans

Pakistan has also explored wider uses for blockchain-based financial systems. As crypto.news reported, the government signed an agreement in January with SC Financial Technologies, an affiliate of World Liberty Financial, to study the possible use of the USD1 stablecoin for cross-border payments.

The country has also discussed plans for a state-held Bitcoin reserve and the use of surplus electricity for Bitcoin mining and artificial intelligence data centres. Earlier policy discussions also covered cooperation with international crypto companies as Pakistan sought to bring more digital asset activity into a regulated system.

However, the rapid expansion of the sector has also brought closer attention to financial crime controls. The State Bank requires regulated institutions to report suspicious activity under existing anti-money laundering rules, while the FIA’s new unit will investigate cases where authorities suspect digital assets played a role in criminal activity.

Pakistan’s latest move therefore adds a dedicated law enforcement layer to its developing crypto framework. PVARA will continue supervising licensed companies, while the FIA’s specialist unit will focus on alleged criminal use of digital assets. Other federal agencies could also establish their own crypto-focused teams if they follow the recommendation made by the FIA’s Counter-Terrorism Wing director.

Bitcoin held near $66,300 on Wednesday, consolidating a two-week high, as the semiconductor rally that has driven crypto all month extended into a second session and the Japanese yen sank to its weakest level in four decades.

The largest cryptocurrency was up nearly 1% on the day and 3% on the week, with about $31 billion changing hands and a 24-hour range of roughly $65,400 to $66,900.

Ether traded near $1,935, up 3% on the week. XRP added 2% to $1.14 and TRON edged up, while the day’s laggard was hyperliquid’s HYPE, down 4% to $60 and off 10% over seven sessions. Bitcoin’s dominance and the majors’ muted daily moves point to a market drifting higher on macro rather than any crypto-native catalyst.

The engine is still the chip trade. MSCI’s Asia Pacific equities gauge rose 1%, extending Tuesday’s biggest one-day gain in a month, with South Korea’s Kospi jumping 5% as a leveraged-position unwind that had pulled the benchmark nearly 30% off its peak appeared to be ending.

Samsung and SK Hynix led, following a more than 5% jump in a U.S. semiconductor gauge on Tuesday that clawed the index back out of a technical bear-market territory.

Balance Coin (BLC), an algorithmic stablecoin designed to track the U.S. dollar, lost more than 99% of its value after blockchain security firms reported a suspected exploit involving 42DAO.

PeckShield said the incident caused about $915,000 in losses and linked the BLC collapse to an exploit affecting 42DAO, the decentralized organization connected to the Balance Protocol ecosystem. The security firm said Balance Coin “has plummeted -99%” following the reported attack.

Movement Labs, the team behind the Movement Ethereum layer-2 blockchain, has filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the District of Delaware, according to court records. The filing, made July 15, uses Subchapter V—an expedited reorganization track intended for qualifying small businesses—while the company restructures under court supervision.

The court has already approved interim requests that allow Movement Labs to keep operating through the process. Those approvals include maintaining bank accounts and cash management systems, along with access to debtor-in-possession (DIP) financing to fund continued operations. Creditors have until Sept. 14 to submit claims.

Key takeaways

• Movement Labs filed for Chapter 11 under Subchapter V, enabling continued operations while it restructures.
• Interim court approvals cover cash handling and DIP financing to support day-to-day operations during bankruptcy.
• The petition applies to Movement Labs only, according to Move Industries CEO Torab Torabi.
• Multiple earlier setbacks tied to MOVE token trading and market-making concerns preceded the bankruptcy filing.

Court-supervised reorganization begins under Subchapter V

In its Chapter 11 filing, Movement Labs sought protection as it reorganizes following a period of disruption for the Movement ecosystem. The petition was filed July 15 in the District of Delaware and placed the company under court oversight, with Subchapter V designed to streamline the path to reorganization for eligible businesses.

Per the court approvals reported in the filing process, Movement Labs was allowed to continue using its banking and cash management arrangements. The court also authorized debtor-in-possession financing—an important step in Chapter 11 cases because it can help preserve operational continuity while liabilities are addressed.

The timeline for creditors is set at Sept. 14 to file claims, giving holders of potential debts a defined window to participate in the bankruptcy process.

What “Chapter 11” means for the ecosystem

After the bankruptcy filing became public, Move Industries CEO Torab Torabi clarified that the court protection applies only to Movement Labs. Torabi wrote on X that Move Industries—described as having taken over development and operations of the Movement ecosystem—continues to operate normally.

Earlier coverage and Movement’s own communications indicate that Move Industries assumed responsibility for development and operations from Movement Labs in December 2025, through a transfer described in a post on the Movement Network website: Movement Network Foundation and Move Industries announce completion of.

That distinction matters for readers trying to separate the corporate entity in bankruptcy from the broader project. While Chapter 11 may affect contracts, liabilities, and certain company-held assets, it does not automatically mean all ecosystem activity halts—especially where another operator is already handling development and operations.

A market-making controversy and listing actions preceded the filing

Movement Labs’ bankruptcy comes after months of controversy connected to the launch of Movement’s MOVE token and a market-making agreement that drew scrutiny.

According to earlier reporting from Cointelegraph, Movement Labs suspended co-founder Rushi Manche in May 2025 over a deal he helped broker with Web3Port. The market maker reportedly received 66 million MOVE—about 5% of the token’s supply—and later sold the holdings. Cointelegraph noted this was followed by an independent investigation, with the reported sales creating downward pressure on the token’s price.

Cointelegraph also reported that Coinbase suspended trading for MOVE later in May 2025 after determining the token no longer met its listing standards, while review into the market-making arrangement was ongoing.

In the period since those events, the MOVE token faced prolonged weakness. Cointelegraph cited a continued decline, stating the token has fallen more than 94% over the past year to roughly $0.01. The article referenced CoinGecko for the one-year price chart: CoinGecko.

Investors and users: what to watch next

Chapter 11 filings often signal the beginning of a longer restructuring process, and this one is likely to add a layer of legal complexity to questions around Movement Labs’ obligations and any assets under its control. Even if Move Industries continues operating, the bankruptcy proceedings can still influence how related contracts are handled and how remaining stakeholders are treated.

With creditors now having until Sept. 14 to file claims, the next steps worth monitoring are the bankruptcy court’s ongoing approvals, the scope of DIP financing over time, and whether subsequent filings clarify what parties will be prioritized during restructuring.