Cryptocurrency scam worth multi-million busted by Indian police 12448
News
Roshni Vayyapuri
Jun 6, 2018 at 1:31 PM

cryptocurrency scam worth hundred crores was exposed by India’s crime branch yesterday in Tane, Mumbai. The firm operated for two years in India under the guise of a real estate firm.

A senior police officer from the Crime branch told Hindustan Times that during the raid, officers found an office in Vikhroli. The scam was functioned from this area. Some police officers are involved in the scam and their roles are being investigated by the crime branch.

The scam was carried out by an alleged real estate company named Flinstone Group. In addition to promising investors to give flat, they have offered citizenships in African and Caribbean countries where they claim to establish cryptocurrency legal tender in a few years. The Flintstone Group’s cryptocurrency was called MoneyTradeCoin (MTC).

Hundreds of crores of money were invested by the investors. The investigation and raids were performed after the Mumbai based businessman filed a complained against the MoneyTradeCoin (MTC). They are claimed to have invested 1.7 crores in the firm and did not receive anything even after the promised date.

On Monday police arrested two people but the main criminal of the alleged scam, director of Flintstone Group managing director Amit Lakhanpal escaped to another country a few days before. According to Hindustan Times, his office had photos of him posing with several leading celebrities and politicians to impress and convince his clients.

“He may have even invested in a Bollywood film featuring a major male star, but we are verifying this,” Police officer added.

Lakhanpal’s website states, MoneyTrade Coin is an intellectual property jointly owned by Dubai based firm Bitcoin Global FZE, UAE and Money Trade Coin Ltd, UK. Mr. Amit M. Lakhanpal, is the Director of Money Trade Coin Ltd (and is one of the key members of Bitcoin Global FZE and MD of Flintstone Group, India).”

Almost 20 employees were working for Flintstone’s Thane office had 20 employees and Vikhroli firm had 50.

“Employees here were using MTC. Pal and his associates promised investors a 20-times return on investment in a mere six months. But once the deadline passed, the company made several excused to not release the money.”

The Indian crime branch registered a case under sections of Indian Penal Code, Maharashtra Protection of Investors and Depositors (MPID) Act, and the Chit Fund Act

The officer added, “A few days ago, some investors even went to Dubai to meet Lakhanpal, but they were allegedly threatened and were told that they should not ask for their money. We also found that Lakhanpal had never constructed any building, even though he claimed to run a real estate company.

 

Image via Hindustantimes

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