Indian police arrest suspected deputy leader of cryptocurrency fraud ring

Nigel Frith
flag of india

Police in India have taken the suspected second in command of a complex cryptocurrency fraud scheme into custody.

They say Rohit Kumar has been charged with a variety of different crimes. He is alleged to have committed cheating, criminal conspiracy and a violation of the Prize Chits and Money Circulation Schemes (Banning) Act.

The charges come in relation to his suspected involvement in Money Trade Coin (MTC) – a coin which did not ever begin properly trading in an exchange context.

It is understood that the alleged fraud may have scammed investors out of a sum totalling five billion rupees, which is equivalent to around $70 million US dollars or £55 million British pounds.

According to police, Kumar and the group he allegedly worked with told potential investors that they would receive high returns upon investing in the scheme.

Kumar, who works as a collection agent, is believed to have evaded capture over his role in the alleged plot for a year.

The plot was complex and multinational in nature, with offices in Dubai and Delhi both believed to have played host to the alleged crimes.

While most of the conspirators are believed to be Indian, the advantage of having a presence in Dubai was that the law there is relatively friendly to cryptocurrency schemes.

While in Dubai, Kumar’s accomplice Lakhanpal supposedly held meetings with members of the Dubai royal family as part of the promotions for MTC.

He is even believed to have told people that his partner was a member of the royal family.

It is understood that when back in India, he claimed he was a representative of the Indian Ministry of Finance. He also told people that MTC had a number of offices in destinations around the world such as Italy and Singapore.

Three other individuals who are also alleged to have been involved in the scam have also been taken into custody. However, another has also been on the run: Amit Lakhanpal is understood to have travelled to London in the UK.

“The accused had set up office in Delhi’s Vikram Nagar and used to collect money from investors promising high returns. Lakhanpal was earlier holed up in Dubai and we believe that he may have fled to London”, a police source said.

This is far from the first time that India has suffered crypto-related crimes.

Just last month, it was revealed that 8,000 people had been tricked into parting with their cash as part of a scam in the city of Pune in the state of Maharashtra.

It is understood that this alleged scam, led by Amit Bhardwaj, was known as GainBitcoin. It is believed that the equivalent of millions of dollars were lost by investors as part of it.

The case demonstrated that Indian law enforcement authorities are increasing their understanding and use of technology in order to combat crypto fraud.

According to industry press, a “digital forensic analysis” was carried out in order to locate a wallet with 452 Bitcoins in it as well as cash, Ether coins and more.

Nigel Frith

Latest news

Forex vs Crypto: What’s Better For Beginner Traders?
The crypto and forex markets are two of the world’s most popular among investors and traders. Read more
Three Great Technical Analysis Tools for Forex Trading
You don’t have to be very technical minded to make use of technical analysis in your forex trading. Read more

Safest Forex Brokers 2024

Broker Info Best In Customer Satisfaction Score
#1 73% of retail CFD accounts lose money. Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
#2 Blackbull LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
#3 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
#4 * 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money Founded: 2008 Global CFD Provider
Number One Broker
Best Trading App Visit broker
#5 Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
#6 Forex Broker eToro Logo76% of CFD traders lose money Founded: 2007 Global CFD & FX Broker
Number One Broker
#7 XM LogoYour capital is at risk Founded: 2009, 2015 and 2017 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
#8 FxPro LogoYour capital is at risk Founded: 2006 CFD and Cryptocurrency Broker
Number One Broker
CFD and Cryptocurrency Visit broker

    Forex Fraud Certified Brokers

    eToro Logo
    XM Logo
    FXTM Logo
    BlackBull Logo Small
    FxPro logo
    AvaTrade logo
    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.