Tech

Pakistan central bank orders startup Tag to refund customers – TechCrunch

The State Bank of Pakistan, the central bank of the South Asian state, has ordered fintech day “Immediately” refunding all funds to customers, citing breaches of regulatory requirements and “other concerns” that raise existential questions about the startup’s future.

The regulatory measures follow a months-long investigation by Tag providing banking and financial services to users in Pakistan. According to an investor letter available to TechCrunch, the startup has been accused of forging documents to the central bank. The Central Bank not sketched (PDF) which tag had broken, but set a deadline of August 19 for the refund.

Tag co-founder Ahsan Khan accused the startup’s other co-founder, Talal Gondal, of forging documents to the central bank; After the fraud was discovered, the bank suspended the startup, he wrote in a letter to investors in June.

“I had learned of Talal Ahmad Gondal’s unscrupulous and unprofessional behavior while using TAG since the 31st of 2022 when I learned of Talal’s case.)” Khan wrote in the June 16 letter obtained by TechCrunch.

“Currently, I am faced with illegal actions by the other founders, Talal Ahmad Gondal and Alexander Lukianchuk, with which they tried to oust me as a founder and shareholder of TAG Fintech for totally fabricated reasons. It appears that this action was taken jointly by the two of them to shift blame and liability onto me alone, which is a rather unfortunate turn of events as I have consistently acted as a sensible, prudent, and prudent founder since the inception of SHIELD. It is therefore imperative that our investors, who have invested valuable sums in TAG in order to run a reputable business and earn a return on their investment, are made aware of the current alarming situation.”

Tag is one of the fastest growing startups in Pakistan. It was valued at $100 million in its seed funding round last September. The startup counts Liberty City Ventures, Canaan Partners, Addition and Mantis among its backers.

Gondal did not immediately respond to a request for comment.

Continue reading: Local journalist Taimoor Hassan was reports on Tag’s problems for weeks.

Pakistan central bank orders startup Tag to refund customers – TechCrunch Source link Pakistan central bank orders startup Tag to refund customers – TechCrunch

Related Articles

Back to top button