India: Police Arrest Suspects Of Alleged $17 Million Crypto Scam


Indian law enforcement busted a group allegedly involved in a cryptocurrency scam that amassed an estimated 1 billion rupees ($17 million).

Law enforcement in Mumbai, India have exposed a group apparently associated with a cryptocurrency scam that generated an approximated 1 billion rupees (almost $17 million), regional media outlet The Times of India reports on Feb. 17.

The case reportedly caused the freezing of several accounts in the nation and to the arrest of 4 individuals, Sanjay Sontakke, Rajnikant Kumavat, Alpesh Barodia and Kirankumar Panchsara. According to The Times of India, the authorities are likewise searching for a fifth suspect, Ashok Goyal, who reportedly played a crucial role in the alleged fraud.

The problem that caused the four arrests was submitted by a citizen of the Indian city of Surat, Umeshchand Jain, who alleged that suspects defrauded him of 10.2 million rupees (about $145,000).

The articles quote cops inspector Sunil Jadhav discussing the plan:

“The accused held meetings in Mumbai, Surat, and other parts of Gujarat, and lured people into investing their hard-earned money by promising to double it in two months. Initially, the gang repaid a few investors to lure more people in and then defaulted. Their intention was to cheat.”

According to the report, the group released a cryptocurrency dubbed “Cashcoin” a year ago, which they then sold to financiers, guaranteeing them to double their financial investments.

The offenses registered by the city crime branch of the regional police forces are apparently cheating, breach of trust and criminal conspiracy.

The lawyers of the offenders declare that they are innocent and have been mistakenly jailed.

Last month, Indian cops also arrested a partner of a group accused of performing a crypto scam including 5 billion rupees (about $71.6 million).

A report published by crypto analytics company Chainalysis in January exposed that the worth of Ethereum (ETH) taken via scams reached $36 million 2018, more than doubling in 2018, as compared to 2017.


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