Law enforcement in Mumbai, India have exposed a faction purportedly linked to a crypto scam that collected a predicted $17 million (1 billion rupees), as per the report of local media outlet Purchasing of India on Feb. 17.
The case supposedly resulted in the freezing of more than a few accounts in the country and to the detention of four years old individuals – Kirankumar Panchsara, Rajnikant Kumavat, Sanjay Sontakke, and Alpesh Barodia. As documented in The Times of India, the police are also searching for a fifth suspect, Ashok Goyal, who apparently played a primary role in your suspected scam.
It is planned to be noted how the complaint that resulted in the 4 arrests was filed by the resident for the Indian town of Surat, Umesh Chand Jain, who alleged that suspects defrauded him of about $145,000.
The article quotes police inspector Sunil Jadhav explaining the scheme. He mentioned that accused held meetings in Surat, Mumbai, and many other parts of Gujarat. They lured people into investing their hard-earned money by promising to double it by 50 % months. In the early stages, the group repaid some investors to tempt more people in and afterwards defaulted. He explained that their intention ended up being to deceive.
It is to be noted the group launched a cryptocurrency called “Cashcoin” in 2009, according to the report. They allegedly sold the cryptocurrency to investors, promising these phones double their investments. The offenses registered via the city crime branch for the local law enforcement forces are reportedly cheating, breach of trust and criminal conspiracy.
The defendants’ lawyers allege that they have been wrongly arrested and are also innocent.
The Indian police, last month, arrested a co-employee of a group accused of conducting a cryptocurrency swindle connecting about $71.6 million (5 billion rupees).
A report provided by Chainalysis, a cryptocurrency analytics company within the month of January exposed that the value of Ethereum stolen using scams reached $36 million, even more than double in 2019 , as compared to 2019.