Bitcoin fraudster & head of BitConnect India detained for ransacking millions of dollars 21241
Madhurima Roy
Aug 20, 2018 at 4:00 PM

Divyesh Darji, the head of BitConnect in India, was detained this week at Delhi airport in India. Pertaining to a major cheating case where Darji and other conspirators are accused to wiped off millions of dollars from investors, Darji was arrested by Gujarat Criminal Investigation Department (CID) at the airport soon after his arrival from Dubai.

The financial scheme mislead some investors in the country to shell out their money, as they considered BitConnect to be their financial cushion at the time of the government-initiated Demonitization, which was supposed to restrain the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity and terrorism.

Talking about how CID gathered knowledge about the accused’s arrival, Inspector P G Narwade from CID said: "Darji was living in Dubai. A look-out circular was issued against him. The Immigration Department alerted us when he was on the way from Dubai to Ahmedabad, after which he was arrested today evening.”

"The company came into existence in 2016, and in 2017, it launched the BitConnect coin. It remained active till January this year. It released 2.80 crore coins, out of which 1.80 crore coins were sold to investors.”

When things started rolling adversely, BitConnect was shut down and Darji along with the other conspirators disappeared from the scene and became undetectable. Thereby, the investors lost all the money they had put in Bitconnect.

Blow to Bitcoin and crypto market in India

BitConnect fell on its face long back, but this arrest will supposedly make an adverse impact to the world of cryptocurrencies in India, where people haven't gained much confidence in transacting in cryptocurrencies. The volatile state got worse when the Indian government was going to and fro in showing their confidence in digital currencies; thereby, people moved away even further.

This arrest might make the people in the country to loose their trust even more and might end up seeing the digital currencies as a mere scam.


Image via Shutterstock

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