In India, over 1000 persons have been duped of nearly Rs. 100 Crores (nearly $12.8 million) through Ponzi scheme in the name of investment in Crypto-coins and Russian-based oil company. Economic Offences Wing (EOW) of Delhi Police has arrested one accused person identified as Ashish Malik.
According to report in IndiaToday, the police after conducting preliminary investigation has come to know that accused Ashish Malik, who is an MBA graduate, along with his two associates conducted seminars across the country and trapped victims with the promise of giving 20 per cent per month on their investments by investing their amount in a Russian-based oil company.
The accused persons allegedly conducted seminars in five-star hotels to win confidence of attendee investors and lured them with assurance that their money will be further invested in crypto-coins in the name of Russian company.
One of the victims of the alleged fraud, Anand Laxman Pardeshi, had filed a complaint in a Delhi court alleging that he came across an advertisement in a newspaper that a big petroleum company of Russia was holding a seminar on May 16, 2016 at Hotel Radisson, Paschim Vihar.
According to the news report, Anand Laxman Pardeshi attended the seminar where the accused Ashish Malik and his two associates, namely Sandeep Kaushik and Sunil Singh introduced themselves as directors of Roseneft Hedge Fund, Jackpotmania company. They also allegedly told the gathering there that the company was a part of a Russian-based oil company and investors would be paid a profit of 20% every month.
The complainant further alleged in his complaint that acting on their promise, he invested Rs. 89.25 Lakhs (nearly $1,15,000). To keep him invested, the accused persons paid him returns for initial two months. However, payments were stopped thereafter and the accused stopped answering his phone calls.
The accused, allegedly created a crypto-exchange website. They also enrolled the victims on the website, created their profiles and gave their victims unique identity. When more than 1000 persons were conned and after collecting millions of dollars from them, they allegedly withdrew the amount and fled from India.
The investigation agency has got their bank accounts freezed and look-out notices have been issued against the other accused persons who are on the run.
It is to be noted that Indian Government has been trying to discourage its citizens from investing in cryptocurrencies by taking various measures such as imposing 30% on capital gains made in crypto investments. All major economic countries are in the process of framing regulations for crypto transactions as people are becoming victims of frauds in the absence of law, rules and regulation with regard to crypto transactions.
