The decision of the Reserve Bank of India (RBI) may have killed legitimate cryptocurrency firms in the country, but it appears that strict legislation has not deterred local scammers and scammers.
In the last Indian criminal police arrested two suspects for allegedly deceiving 300 million Indian rupees (about 4 million dollars) from 1,800 people, reports the Press Trust of India (PTI).
The defendants ran a fake cryptocurrency company called "Ripple XRP Future", which promised to triple money investor in 250 days, and also ran daily and weekly payment schemes. The Ripple Future management team said the company was based in the United States, but the Indian police found that the founders effectively managed the fraudulent business from Ghaziabad, a city near the country's capital, Delhi.
The NDTV stated that the arrests were made on the basis of complaints by about 50 different investors, although the number of total investors involved is much higher. The two arrested are facing criminal charges under various sections of the Indian Penal Code (IPC), but another accomplice is still on the run.
For those who were wondering, the Indian police did not make clear whether Ripple Future claimed any connection to Ripple Labs XRP-issuer.
It is worth noting that India has seen a steady increase in scams related to cryptocurrency. Local authorities, Bollywood actors, prominent entrepreneurs and the ruling political party have also faced accusations and accusations in several cases.
Published 2 August 2018 – 09:49 UTC