Indian Police Apprehend Suspects Who May Have Been Involved In A $17 Million Cryptocurrency Scam

Blockchain technology is secure. This fact can’t be disputed. However, no technology is 100% free from possible attacks by bad actors. Either by hacking cryptocurrency exchanges, wallets, stealing private keys, or selling fake tokens, people have found a way to taint the space with the crime. In the dark web, privacy-centric cryptocurrencies like Monero and Zcash are the most common for illegal transactions. This is because users who use these platforms can decide to be completely anonymous and untraceable transactions.

The rate of cryptocurrency related crimes increased last year during the never-ending cryptocurrency winter. There were a lot of fake tokens sold to unsuspecting investors. Recently, authorities in India apprehended four suspects may have been involved in a cryptocurrency-related scam.

Law Enforcement Agents In Mumbai Arrest Suspects Involved In Cryptocurrency Related Scam

According to The Times India, law enforcement officers in Mumbai have apprehended individuals who were allegedly involved in a cryptocurrency scam. The amount involved in the scam was about one billion rupees. This is equivalent to almost $17 million. During the investigation, the authorities froze many accounts that may have been involved and arrested four individuals. The people who have been apprehended are, Kirankumar Panchsara, Sanjay Sontakke, and Rajnikant Kumavat. Note that these aren’t the only suspects involved. The Mumbai authorities are also looking for Ashok Goyal, a fifth suspect who may have been key to the success of the scam.

Umeshchand Jain, a resident of Surat, was responsible for filing the complaint. According to the filing, the suspects fraudulently got away with his 10.2 million rupees. This is about $145,000. Part of the article was as follows:

“The accused individuals held their meetings in Surat and Gujarat. They lured people to their venues and tricked them into investing their money with a promise of 100% profit in two months. The gang paid the first few investors to attract more people. The goal was to cheat on a large scale.”

The report also stated that the group launched a cryptocurrency dubbed ‘Cashcoin’ about twelve months ago. They sold this cryptocurrency to investors and promised to double their investments. The local law enforcement and city crime branch have reported a breach of trust, cheating and criminal conspiracy as the charges against these individuals. As expected, their lawyers claim that the defendants are innocent and have been wrongfully apprehended.

This year, the authorities in India have doubled down on their efforts to bring all those who commit cryptocurrency related crimes to justice. Last month, another arrest was made. An associate of a group of individuals who conducted a cryptocurrency scam that involved 5 billion rupees, approximately $71.6 million, was arrested.

India isn’t the only country that is reporting cryptocurrency related crimes. It has become a global phenomenon. This particular method of selling cryptocurrencies with the promise of significant profit is one of the most common cryptocurrency fraud on record.

Ethereum (ETH) Price Today – BTC / USD

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In January, Chainalysis, the cryptocurrency analytics company, revealed that the total value of Ethereum that was stolen through scams in 2018 was double of the value stolen in 2017 amounting to about $36 million.

Why do you think the rate of cryptocurrency related crimes is on a steady rise? Tell us your opinion in the comment section.

Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.

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