Bitcoin, or blockchain based-cryptocurrencies is arguably the hottest thing in market now, with its prices surging astronomical levels every passing day. With the value of these virtual currencies at an all-time high, everyone wants a piece of the fortune.
But unlike the other conventional investments like share market and bonds, majority of the potential investors have little to no knowledge about cryptocurrency, how they work or the risks involved.
Given this scenario, it was only a matter of time some fraudsters try to use the bitcoin’s popularity and ambiguity to their advantage to fool people. Delhi Police’s Crime Branch has busted a gang which has allegedly made a fortune, duping people promising them to sell bitcoins.
One person, identified as Narender alias Sonu Dahiya, was arrested in Rithala, on Wednesday, on charges of defrauding thousands of people.
“The arrested accused, Narender, is a resident of Sonipat in Haryana. Police said that with Narender’s arrest, the role of seven to eight more persons is under the radar of the police team,” Joint Commissioner of Police (Crime) Alok Kumar said.
Police said the gang lured people to investing in a newly-launched cryptocurrency, called “Kashhcoin”.
According to Arun Kumar, the original complainant in the case, who was cheated to the tune of Rs 13.90 lakh by the gang, he bought the newly launched cryptocurrency at a rate of Rs 3.50 per coin and was promised a huge profit.
During the investigation, some more complainants were received.
ALSO READ: Everything You Need To Know About Bitcoin
The investigators also found that the accused had organised seminars in different places including Nepal, Mumbai, Gujarat, Chandigarh, Raipur and Nagpur for business promotion, looking for potential victims.
How Kashhcoin gang operated
Delhi police said Narender who had a multi-level marketing background used the same tactics for his Kashhcoin scheme. The gang had formed a website and using social media platforms to approach investors.
Once an ‘investor’ purchased a virtual currency for Rs 3.50 per coin, they had to register in the company’s website, Kashhcoin.net.
A simple glance at the website gives users insights to how their investment is safe and how big it could grow.
By their own admission, the maximum amount of KASHH Coin is 2,515,020,000 (Two Billion, Five Hundrеd Fifteen Million Twenty Thousand) and unlike money issued by government, KASHH Coin саnnоt bе affected bу inflation аnd аrе impossible tо counterfeit.
The value of KASHH Coin depends on factors like usability, demand-аnd-supply, and this is the sole reason that cryptocurrencies аrе nоt tied tо аnу раrtiсulаr country оr central bank. The value can’t be affected by either inflation or counterfeit.
If one study these claims carefully, these are similar to what other cryptocurrencies offer and there was hardly anything to be suspicious about.
It is worthwhile to note that under the guidelines of the Reserve Bank of India, cryptocurrencies are still legal in India and the RBI has repeatedly warned investors against them.
News credit : Indiatimes