Since September, several reports in Indian media outlets have highlighted incidents of unsuspecting customers being allegedly duped of their money through crypto ponzi schemes
In the past too, incidents of wealthy businessmen losing their money through fake crypto wallets have come to light
Between 2017 and 2019, Indian investors have reportedly lost more than $500 Mn to cryptocurrency scams operated within the country and abroad.
Since September, several reports in Indian media outlets have highlighted incidents of unsuspecting customers being allegedly duped of their money by scamsters believed to be operating crypto ponzi schemes.
In Bengaluru, the police are investigating three companies — Long Reach Global, Long Reach Technologies and Morris Trading Solutions. According to the police, these companies collected at least INR 15K each from over 11 lakh people from across the country to invest in a new cryptocurrency called Morris coin. The police have also arrested a 36-year-old man from the Malappuram district of Kerala who is the CEO of all the three entities.
Last month, Delhi Police was investigating an alleged cryptocurrency exchange scam, believed to have been operated by one Pluto Exchange, which marketed itself as a cryptocurrency investment firm and had its offices in Connaught Place. One of the complainants was asked by one of Pluto Exchange’s founders to invest in a new cryptocurrency that the firm had launched. The complainant was assured that he would receive 20-30% returns on his investment.
After investing about INR 5 lakhs in the scheme but not receiving any payout, the complainant tried to approach the company’s officials, only to find that the exchange’s office had shifted from India to Dubai. In the preliminary investigation, it was found that the 43 complainants had invested close to INR 2 Cr in the scheme.
In the past too, incidents of wealthy businessmen losing their money through fake crypto wallets have come to light. Such platforms target users through emails and SMSes, asking them to deposit their bitcoins or other cryptocurrencies in a “new” crypto exchange to get the opportunity to trade with other users globally. Once users have deposited their crypto assets in the exchange wallet, the operator shuts down the portal, with the users losing access to their crypto earnings.