The accused Nishad has been charged under the Prize Chits & Money Circulation Schemes [Banning] Act by the district police U Abdul Karim.
A team led by police inspector P Vishnu seized several documents from Nishad’s house & alleged that he has duped thousands of individuals from across India of several thousands of dollars.
Nishad, who is additionally the director of a Bengaluru-based startup Long Rich Technologies, illegally lured investors into investing within the crypto assets “Morris Coin.”
As per the investigation department, the police were promised a daily return of 270 rupees [~$3.60 USD] for 300 days if they deposited a min amount of 15k rupees [around $200 USD] into the Morris Coin.
The scheme lured that the investors would be able to exchange Morris Coins after the 300-day lock-up period. Investors were reportedly promised added benefits for linking more people to deposit funds into the scheme.
The police revealed that Morris Coin wasn’t listed on any exchanges, making it impossible to exchange the coin on any of the cryptocurrency exchanges listed by the investors. They also claimed that the firm doesn’t have any registered offices.
Even the Morris Coin ICO website has no data about the team members nor the developers, neither does it give any insight into what the project is about. Nishad, however, claimed that Morris Coin was operating in compliance with the law.
The police though panned to reach bent investors in Morris Coin to record statements & further investigate the case.