Trading platform ATFunded has suspended new account purchases for users in Pakistan, citing pressure from its payment processor and a unsustainable surge in financial fraud.
The decision follows a spike in chargebacks — transactions reversed due to disputed payments — which triggered a directive from the company’s payment vendor. Chargebacks often result in fines for merchants and can jeopardize their ability to process payments.
Company Statement Emphasizes Business Necessity
In a statement, the company said the move was a business necessity and not a reflection on legitimate traders in the region.
“Unfortunately, a few cases of misuse have created a situation we cannot sustain,” the announcement read.
The firm also cited “a large amount of group activity” it had been managing, indicating potential coordinated attempts to exploit its systems. The combined financial risk and “potential reputational impact” outweighed the benefits of continuing operations for new users in the market.
ATFunded described the restriction as temporary and stated that it is working on solutions. Existing users in Pakistan appear to be unaffected.
Industry-Wide Crackdown on Fraudulent Activity
The crackdown highlights a growing movement across the industry to strengthen platform security and counter organized fraudulent activity. In late August, crypto exchange MEXC tightened its risk and compliance measures after identifying 17,464 suspicious accounts linked to 3,070 fraud syndicates, mainly from the CIS and India. Its July–August crackdown targets fake accounts, stricter compliance and harmful bot trading to protect users and ensure market integrity.
This industry action coincides with a new regulatory push from U.S. authorities. The Securities and Exchange Commission (SEC) is establishing a specialized task force within its Enforcement Division specifically targeting violations originating abroad. The Cross-Border Task Force’s initial mandate is to investigate potential breaches of federal securities laws by foreign firms, signaling a more aggressive approach to pursuing fraud and market manipulation that crosses into U.S. markets.
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