In line with a recent news by native media ‘The Times Of India’, the Mumbai police officials in India have exposed a group allegedly involved in an exceedingly cryptocurrency related scam that raised around 1 Bln rupees [nearly $17 Mln].
The case reportedly froze several accounts within the country and led to the arrest of four people — Sanjay Sontakke, Rajnikant Kumavat, Alpesh Barodia and Kiran Kumar Panchsara. As per the native news report, the police is still searching for a fifth suspect named Ashok Goyal, who reportedly played the role of a vital key within this alleged scam.
The complaint that led to the four arrests was filed by a resident of the Indian city of Surat named Umesh Chand Jain, who alleged that the suspects defrauded him of 10.2 Mln rupees scam [about $145,000].
The articles additionally quotes police inspector Sunil Jadhav explaining the scheme:
“The accused held conferences in Mumbai, Surat, along with other parts of Gujarat, thereby luring individuals into investing their hard-earned cash by promising to double it within next two months. Initially, the gang repaid a couple of some investors to lure even more individuals in and then defaulted. Their intention was to cheat.”
In line with the report, the group launched a cryptocurrency scam scheme dubbed “Cashcoin” a year ago, that they then sold to several investors, promising them to double their investments in no time.
The offenses registered by the city crime branch of the native law enforcement forces are reportedly cheating, breach of trust and criminal conspiracy.
The lawyers of the defendants however claim that they’re innocent and have been arrested wrongly.
Just last month, Indian police conjointly ‘arrested‘ an associate of a group accused of conducting a cryptocurrency scam involving around 5 Bln rupees [around $71.6 Mln].
An another report revealed by ‘Chainalysis‘, earlier in Jan. this year stated that the net worth of Ethereum [ETH] stolen via scam[s] reached around $36 Mln last year, which is more than doubling in 2018, as compared to 2017.