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.
- A New President and All-time Highs
- USDJPY Daily – Possible uptrend in the works
- Sideways Markets Face Challenges from USD and Data Releases
- How to Safely Trade the Current Markets 13/01/21
- Gold Weekly – Bearish momentum on the rise
- FTSE 100 and GBPUSD are Making Moves – But Keep Your Eyes on the Dollar 11/01/21
Safest Forest Brokers 2020
|Broker||Info||Best In||Customer Satisfaction Score|
|#1||Your capital is at risk Founded: 2011||Global CFD & FX Broker||
BEST FOREX BROKER Visit broker
|#2||CFDs and FX 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. Founded: 2010||Global Forex Broker||
Low minimum deposit Visit broker
|#3||Your capital is at risk Founded: 2014||Global Forex & CFD Broker||
Best Trading Conditions Visit broker
|#4||Your capital is at risk Founded: 2006||Globally regulated broker||
BEST CUSTOMER SUPPORT Visit broker
|#5||Your capital is at risk Founded: 2014||Global Forex Broker||
BEST SPREADS Visit broker
Stay up to date with the latest Forex scam alerts
Sign up to receive our up-to-date broker reviews, new fraud warnings and special offers direct to your inbox