Indian police have arrested two suspects recently in the case of cryptocurrency scam of worth 300 million Indian Rupees ($4 million approximately). It is further alleged that they have duped around 1,800 people through their fake company dubbed as Ripple $XRP▼0.66% Future.
The Reserve Bank of India imposed the ban on cryptocurrency in India earlier this year to curb the illegitimate business and flow of black money in the market. However, the entire purpose of the ban seems defeated as there is a significant rise in the number of crypto scams. The ban had a huge impact on the genuine business of crypto trade but the rigid crackdown didn’t affect the fraudsters of this domain.
How Was The Cryptocurrency Scam Operated?
According to The Next Web, the accused promised investors to triple their money within the duration of 250 days along with few other weekly and monthly schemes. It is claimed that their company was headquartered somewhere in the US. However, it was later found that the fraudulent undertaking was operated from Ghaziabad near the capital.
A police officer investigating this case mentioned that the arrests were made on the complaints filed by 50 investors from the different part of the country. But it is evident that the number of total investors conned runs much larger than this. Apart from the two arrested suspects, one accomplice is still on the run. They all have been charged under various sections of the Indian Penal Code (IPC).
Clearly, there isn’t much awareness of the cryptocurrency trade and operations in the country. Along with that, the government is still taking baby steps to figure out a secure way to deal with this new mode of the payment system. As many countries have readily accepted cryptocurrencies in their payment system and are successfully regulating them, the Indian government’s stand remains unclear on the matter.
There have been several cryptocurrency scams reported in the recent times which have seen indulgence of popular celebs. In addition to this, there have been accusations on the leading businesspeople, local authorities and the ruling political party. However, nothing has been proved yet.
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