A Pakistani judicial magistrate has formally discharged television host and social media personality Waqar Zaka from a cryptocurrency fraud case after the National Cyber Crime Investigation Agency (NCCIA) withdrew its prosecution, citing a complete lack of admissible digital evidence. Main Developments Judicial Magistrate (East) Gulraiz Memon granted the NCCIA's request under Section 494 of the criminal procedure code to abandon the case against Zaka. The agency's plea stated that after a thorough investigation and submission of a final charge sheet, it found that all monetary transactions had moved through regular banking channels and that no admissible digital forensic evidence existed to support the original charges of electronic fraud, illegal foreign remittances, and cryptocurrency activities. State prosecutor Sheeraz Rajpar submitted an approval letter from Additional Director Muhammad Tariq Nawaz, arguing that further prosecution would be a futile exercise and a waste of judicial time, with no likelihood of conviction. The court observed that the prosecution's request was made in good faith and in the interest of justice, noting that the grounds in the plea lacked incriminating evidence. Read also: Sanitation Workers at Gujar Khan Hospital Strike Over Unpaid Salaries Since charges had not yet been framed against Zaka, the magistrate consented to the withdrawal and discharged him. The order emphasized that the prosecution no longer wished to pursue the matter due to insufficient evidence. Background The NCCIA initially launched an inquiry against Zaka in 2022 under the Pakistan Electronic Crimes Act, 2016, the Pakistan Penal Code, the Anti-Money Laundering Act 2020, and the Foreign Exchange Regulation Act 1947. The case centered on an alleged Rs86 million cryptocurrency scam involving a digital content creation course. Investigating Officer Arfa Saeed reported that payments for the crypto-related course were voluntary, and no documentary evidence, agreement, guarantee, or false representation could substantiate any dishonest intent at the outset. A digital forensic examination confirmed that only platforms providing cryptocurrency information, mining options, and subscription-based advisory services were involved. No hacking, data manipulation, electronic forgery, or technical fraud under PECA, 2016 was established. Critically, no private complainant or aggrieved victim came forward alleging that their legal rights had been violated by Zaka. Why It Matters This case highlights the challenges Pakistani law enforcement faces when prosecuting cryptocurrency-related offenses under existing legal frameworks designed for conventional financial crimes. The absence of a specific regulatory regime for digital assets means cases often hinge on proving intent and establishing digital evidence trails, which can be difficult when transactions occur through regular banking channels. The outcome also underscores the NCCIA's resource constraints. The investigating officer noted that the case's prolonged pendency, Zaka's non-availability due to travel, and the prevailing national circumstances, combined with existing workloads on investigators, made meaningful progress unlikely within a reasonable timeframe. What's Next With Zaka discharged and the case formally closed, no further legal proceedings are anticipated in this matter. The NCCIA's decision to withdraw rather than proceed to trial may set a precedent for how similar cryptocurrency-related cases are evaluated in the future, particularly when digital forensic evidence is weak or nonexistent.