The State Bank of Pakistan, the South Asian nation's central bank, has ordered fintech Tag to "immediately" refund all funds to customers due to violation of regulatory requirements and other concerns.
A months-long investigation into Tag, which offers banking and financial services to users in Pakistan, led to the regulatory action. According to an investor letter, the startup has been accused of faking documents. The central bank gave Tag a deadline of August 19 to pay back the money.
The startup Tag was suspended by the central bank after Ahsan Khan accused the other co-founder of faking documents.
I resigned from the position of advisor/COO of TAG Pakistan on April 1st, 2022, because I had suspicions and concerns about Talal Ahmad Gondal's conduct long before he ran TAG.
At the moment, I am facing illegal actions by the other founders, and they have attempted to oust me as a founder and stockholder in TAG Fintech. I have acted as the sane, prudent and cautious founder of TAG since its inception and this unfortunate turn of events is due to the fact that both of them acted in concert to distract blame and liability from me alone. It is important for our investors who have invested valuable sums into TAG for the purpose of a legitimate enterprise and return on their investment to be aware of the current state of affairs.
Tag is a fast growing startup. The seed financing round was worth $100 million. Liberty CityVentures is one of the backers of the startup.
A request for comment was not responded to by the man.
TaimoorHassan has been reporting on Tag's troubles for weeks.
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