$2.6 million Bitcoin ponzi frauds arrested by Indian police! 6637
Asia
Varun
Apr 23, 2018 at 6:18 PM

Cryptocurrency fraud cases have been surfacing more than ever! This time, it’s India’s turn. Indian cops have arrested two individuals who had allegedly involved in a Bitcoin Ponzi scheme, cheating over 5000 victims!

According to a local news, the duo reportedly ran a multi-level marketing scheme (MLM) under the name Bitmineplus to lure in potential investors into their fraudulent scheme. Also, it is said that they threw lavish parties at 5-star hotels in order to gain the confidence of over 5000 individuals!

“Jangra [the mastermind behind the ponzi] had planned to shift his investors to his own cryptocurrency after getting a good sum of investment, but rising debt and the daily pressure from his investors made him flee with the money,” a senior police official said.

According to sources, the platform began functioning in December 2016. They offered several jaw-dropping schemes in order to attract them, such as an average 12% return on their investment, 5% referral income for early investors with an additional 10% in commissions for bringing in additional people.

Being hoodwinked such mouth-watering offers, over 5000 individuals deposited a total of approx. 300 Bitcoins in the firm, only to be cheated later!

An investigating official said, “Their basic idea was to kick-start a multilevel marketing scheme involving bitcoins. The people were given monthly payouts and additional income for referring the scheme to more people.”

“We have identified at least 5,000 IDs which have been duped,” Deputy Commissioner of Police (cyber Cell) Anyesh Roy said on Sunday, according to the Hindu. “For the first few months, the income came in but eventually, it stopped after which the investors started to ask questions.”

As seen during the past few months, most of the cryptocurrency frauds are occurring in Asian countries. The Vietnamese and Chinese crypto fraudulent cases are similar to the Indian schemes but much bigger in magnitude!

If you’re a crypto investor and enthusiast, you know where not to invest! Platforms offering crazy ROI and discounts are most often fraudulent. It is best to keep away from such firms!

Image source: Shutterstock