Mumbai police have arrested four people in connection with an alleged multi-million dollar cryptocurrency scam. The group launched a crypto called Cashcoin last year, and were promising investors that they could double their money in as little as two months. Several people in Mumbai, Gujarat and Uttar Pradesh were victims.
The police say that the group were operating multiple bank accounts in the country and were siphoning investors’ funds via bank transfers. The police have since frozen all accounts linked to the perpetrators.
The con first came to the attention of the authorities when a Surat-based investor, Umeshchand Jain, filed a complaint alleging that the group had defrauded him of 10.2 million rupees (about $145 000).
Police inspector Sunil Jadhav said: “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”.
“My Clients Are Innocent” Claims Lawyer
Lawyers for the alleged perpetrators are claiming that they are blameless and that nobody has been cheated because all transactions were made using cheques.
Ajay Dubey, a lawyer for the accused, said: “My clients are innocent and have been wrongfully arrested”.
The Reserve Bank of India (RBI) the country’s central bank, has banned banks from servicing cryptocurrency exchanges, companies, and traders, effectively strangling the industry. They said virtual currencies “raise concerns of consumer protection, market integrity and money laundering, among others”.
The RBI announced in April 2018 that it was looking at issuing its own Central Bank Digital Currency (CBDC) and set up an interdepartmental group to conduct a feasibility study, however, an unnamed source has since told the Hindu Business Line that the government no longer wants to implement it.
Although four have been arrested in Mumbai, the mastermind behind the scam, Ashok Goyal, is still at large.
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