Crypto fraud: Delhi gang duped 2,500 people of at least Rs 100 cr; how they laid the trap

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New Delhi | Published: April 25, 2018 10:51:28 AM

In what is believed to be the biggest cryptocurrency fraud in the national capital, the Special Cell of Delhi Police have busted a gang that allegedly duped around 2,500 people to the tune of at least Rs 100 crore.

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In what is believed to be the biggest cryptocurrency fraud in the national capital, the Special Cell of Delhi Police have busted a gang that allegedly duped around 2,500 people to the tune of at least Rs 100 crore. According to a report by TOI, the police have arrested two men — Kamal Singh, a DU graduate, and Vijay Kumar, an engineer by profession — in connection with the case.

The police is now conducting raids in Delhi and Uttar Pradesh to nab a co-conspirator codenamed Alagh, and his associate. The police have also searched the gang’s office in Bhikaji Cama Place in south Delhi and seized documents.

According to the details provided by the police, the accused had created a website ‘bits2btc.com’ and had come up with their own currency named HBX and Mcap. There were reportedly running another website ‘gainbitcoin.com’ with other associates and selling non-existent cryptocurrencies. The gang had promised extraordinary returns and payout twice a month. It held meetings in five-star hotels and lured the investors.

When the investors started asking for their money, the gang told them that Bitcoins had been hacked but later went underground.

A Punjabi Bagh-based businessman who had lost several crores, approached police after which a probe was started. According to the complaint filed by a victim, the men had offered attractive investment plans apart from assured income after 15 days. They had promised to keep the money for 18 months, paying 12% interest every 15 days which would double the investment at the end of one and a half years.

Earlier, the Pune police had arrested Amit Bhardwaj, the bitcoin entrepreneur who started his own bitcoin mining operations and duped more than 8,000 people to the tune of Rs 2,000 crores from across the country.

Bhardwaj had introduced the first online retail marketplace accepting bitcoin in the country in 2014 and owns a chain of bitcoin mining operations notable among them are Gain bitcoin- which claims to have set up bitcoin mining operations in China, GB Miners, located in Hong Kong and the recently launched, MCAP.

 

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