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According to a report by Indian Express, local police have successfully arrested Rohit Kumar, an employee of a group accused of conducting a cryptocurrency scam in which investors were deceived by their funds, for a total of 5 billion of rupees (about $ 71 million). The report confirmed that Kumar's arrest was the fourth in connection with the ongoing case of the Money Trade Coin scam, which was discovered just over a year ago in Mumbai.
The currency of the money trade
The police reported that the individual who started the scam is Amit Lakhanpal, the CEO of a real estate company based in India. It is said that Lakhanpal launched and promoted a token known as Money Trade Coin (MTC), but after making more inquiries, it turned out that there was no token listed on any cryptocurrency exchange.
Lakhanpal also performed some functions and appeared in Dubai events with members of the royal family present.
His connections with the Arab royal family gave him credibility as a business man, which was why he convinced a large number of investors to bet their funds in the cryptocurrency. According to a local police officer who chose to remain anonymous, Lakhanpal also deceived potential investors by showing them an article in an international journal, which stated that his project had the support of one of the members of the Arab royal family.
He also courted investors with the prospect of buying houses in Dubai with the returns of their investments and promised them that the Indian Ministry of Finance would soon approve the MTC.
A police source said:
"The defendant had opened an office in Vikram Nagar in Delhi and used to raise money from investors who promised high returns, Lakhanpal was previously holed up in Dubai, and we believe he may have fled to London."
The company would have artificially inflicted the price of the token to get more investors. Those who saw that the token was even more profitable were encouraged by the price increase, and continued to pump money into the scheme.
However, as the price of the token declined, investors were unable to sell their tokens. In the end, hundreds of people were affected and registered complaints with the police, accusing the company and its management of conspiracy and criminal fraud.
The story of Torrid Crypto in India
In recent years, India has been severely hit by a wide range of cryptocurrency scams. As a means to help prevent this, the government has opted to impose strict rules on the country's cryptocurrency space. The Reserve Bank of India has also published a circular prohibiting commercial banks in the country from providing financial services to companies and encrypted transactions.
However, a report by The New Indian Express confirmed that an interministerial committee set up by the Indian government has agreed to introduce appropriate regulations on encrypted assets, with the goal of making these legal assets in the country and counteracting the impact of encryption. related financial crimes. According to the report, the committee has already met twice on the problem and is preparing to present its report to the finance ministry by February.
In addition, the police forces of the Indian states of Kashmir and Jammu issued a public statement at the beginning of this month, warning the public opinion of making investments in cryptocurrencies. Highlighting the fact that digital resources are not regulated by the government, the police said
"The general public is advised not to make any kind of investment in cryptocurrencies, virtual currencies like Bitcoin because there is a real and high risk associated with them".
