Indian Crypto Scammers Make $17 Million by Fake Coin Scam

According to the reports of 17th February ’19, the individuals behind the fake crypto asset, ‘cashcoin’ have been arrested in Mumbai for a scam of $17 Million USD.

The prosecution of criminals regarding crypto has been more efficient and effective due to the increasing awareness of the general public and the governments of different nations across the world. In the same month in which the FCA had issued a strict warning against scams, the law enforcement of Mumbai, India has arrested a group of individuals who have been specialized in crypto crime as reported on 17th February ‘19. These four individuals have been arrested for being involved in a scam which targeted the people of Surat, Mumbai, Gujarat and Uttar Pradesh and made around $17 million. Alpesh Barodia, Sanjay Sontakke, Rajnikant Kumavat and Kirankumar Panchsara have been arrested. Another individual named Ashok Goyal is being sought out by the police.

The gang was carrying out their act by launching a fake crypto asset named as Cashcoin which promised investors big profits. The individuals have been being charged with criminal conspiracy, cheating, breach of trust under the Indian Penal Code [IPC] and sections of the Information Technology Act. The investigation into the scam was initiated when a resident of Surat, Umeshchand Jain, reported to the local police that the criminals had looted him of $145,000. According to the local police report by a police inspector, Sunil Jadhav, the criminals gained the trust of investors by initially repaying the interest which was promised and then after a while the interest wasn’t paid and the criminals had looted the investors of their money.

The report 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.”

The lawyer of the accused, Ajay Dubey, has tried to maintain their innocence and has been insisting that his clients haven’t done anything wrong.

Ajay Dubey said,

“My clients are innocent and have been wrongly arrested. Indian Penal Code sections 419, 420, 406 and 409 are not applicable in this case as no one has been cheated since all transactions are in cheque payment.”

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