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he recent collapse of Treasure NFT, a digital investment scam that defrauded over 80,000 Pakistanis depriving them of up to Rs 5 billion, underscores the urgent need for greater digital literacy, regulatory oversight and caution in the rapidly evolving world of crypto-currency and NFTs.
The concept of currency has evolved significantly over time. From early barter systems to the use of physical currency in ancient civilisations to today’s digital and decentralised financial systems, humanity’s relationship with money has been dynamic. Early forms of currency, such as cattle, grain and metal coins, evolved into paper money in ancient China, marking a revolutionary step forward in global trade. The development of digital banking, credit cards and electronic money in the 20th Century made financial transactions faster and more convenient. This paved the way for cryptocurrencies and digital assets. The emergence of blockchain technology, which underpins NFTs, has opened new opportunities for digital ownership and investment. It has also created opportunities for fraud, theft and exploitation, as evidenced by the Treasure NFT scam. This evolution of currency and digital assets has been widely discussed in A Historical Analysis of Currency Evolution in the Journal of Economic History.
Treasure NFT was marketed as a digital platform that allowed people to mine and trade NFTs for lucrative returns. The platform grew rapidly, especially in Pakistan, due to its promise of high returns on investment, attracting many with limited knowledge of the crypto-currency and blockchain world. It became particularly popular on social media platforms, where some users shared success stories. Treasure NFT’s growth mirrored the rise of similar NFT-based platforms discussed in The Rise of NFTs in Investment in the BlockchainTechnology Journal, where the potential for high returns drove widespread participation in speculative markets.
Treasure NFT’s operation lacked transparency. It relied on vague explanations of how NFTs were mined and how profits were generated. This should have raised red flags. The scam used a tiered reward system, heavily reliant on user recruitment to generate profits, making it resemble a pyramid scheme. The risks associated with such unregulated platforms are highlighted in Ponzi Schemes in Cryptocurrency in the Journal of Financial Fraud Studies, which outlines the characteristics of similar scams, including the lack of a transparent business model and the promise of returns that seem too good to be true.
The rapid adoption of NFTs and crypto-currencies has highlighted the need for thorough investor education. Lacking proper understanding, some people are swayed by the promise of quick profits. Crypto-currency Trends and NFT Markets from the Economic Review of Digital Assets analyzes the potential for exploitation through scams that target inexperienced investors.
The fact that Treasure NFT was not registered with the Securities and Exchange Commission was another red flag that went unnoticed by many. A lack of regulatory oversight is a common feature of many crypto-currency-related scams.
Despite its initial success, Treasure NFT began showing signs of a fraud shortly after gaining popularity. Many users faced difficulties with withdrawals and the platform’s founders remained anonymous. This is often a key indicator of fraudulent operations. The platform also failed to provide concrete details on how NFT mining worked or what blockchain was used. This made it nearly impossible for users to verify the legitimacy of its claims or the security of their investments. This is characteristic of Ponzi schemes, where the business model relies on a constant influx of new investments rather than a product or service. Similar issues are explored in Ponzi Schemes in Cryptocurrency in the Journal of Financial Fraud Studies, which illustrates how these scams deceive investors by offering high returns and promising transparency while masking their true nature.
The fact that Treasure NFT was not registered with Pakistan’s Securities and Exchange Commission (SECP) was another red flag that went unnoticed by many. A lack of regulatory oversight is a common feature of many cryptocurrency-related scams, as discussed in Ponzi Schemes in Cryptocurrency.
By late March 2025, users has started experiencing delays in withdrawing their funds. This ultimately led to the collapse of the platform. In what is known as a “rug pull,” the creators of Treasure NFT disappeared with the money received from thousands of investors. This pattern has been seen in other high-profile crypto-currency scams, such as PlusToken, which defrauded investors of $3 billion, as explored in PlusToken Scam: A Case Study in the Journal of Cryptocurrency Fraud. The collapse of Treasure NFT followed a similar trajectory.
The term “rug pull” refers to the practice of the developers of a fraudulent crypto-currency project suddenly abandoning it and taking the funds with them. The practice is widely documented in financial fraud studies, including OneCoin: The Biggest Cryptocurrency Fraud in History in the International Journal of Financial Crime, which examines the fraudulent exit strategies employed by scam artists in the crypto-currency space.
The financial damage caused by Treasure NFT was significant. Over 80,000 people, mostly from Pakistan, were defrauded of an estimated Rs 2-5 billion. Many of the victims had invested their life’s savings, believing in the promises of quick returns. The emotional and financial toll on these individuals has been profound. Some of the cases have been discussed in Financial Impacts of Digital Scams in Emerging Markets in the Journal of Economic Fraud. The widespread devastation caused by such scams highlights the importance of regulatory oversight and the need for investor protection in emerging digital markets.
Treasure NFT is far from the first digital investment scam to have targeted investors. Similar schemes include PlusToken and OneCoin. Both had promised substantial returns but resulted in massive financial losses. PlusToken, which was a crypto-currency Ponzi scheme, defrauded investors of $3 billion. OneCoin swindled its victims out of $4.4 billion. These scams are discussed in-depth in PlusToken Scam: A Case Study and OneCoin: The Biggest Cryptocurrency Fraud in History. Both offer valuable lessons on the tactics used by scammers in the digital finance space.
The rise of Treasure NFT was fuelled in part by social media, which played a critical role in promoting the platform and recruiting new investors. Facebook, WhatsApp and Telegram were particularly instrumental in the rapid spread of the scam. These platforms are often used by scammers to promote fraudulent investment opportunities, and their ability to extend the reach of these scams. The phenomenon has been discussed at length in Social Media’s Role in Financial Fraud in the Journal of Digital Communication. The use of social media to promote digital scams is a growing concern and highlights the need for greater vigilance and awareness.
The collapse of Treasure NFT underscores the urgent need for enhanced digital literacy and regulatory oversight in the world of cryptocurrency and digital assets. Pakistan, like many other countries, is in the early stages of developing regulations for the digital finance sector. To protect citizens from scams like Treasure NFT, the government must implement stronger regulations and ensure that digital investment platforms are properly monitored. Public awareness campaigns, such as those suggested in Combating Digital Fraud through Education in the IEEE Transactions on Digital Security, are essential to help people recognise potential scams and avoid falling victim to fraudulent schemes. The law enforcement agencies must play a more active role in investigating and prosecuting digital fraud.
The author is a researcher, writer and analyst in field of cyber security. He has an MPhil in cybercrime and is currently pursuing a PhD in computer science