The Indian state Criminal Investigation Department (CID) has announced the tailing of two individuals over an alleged Crypto Ponzi scheme which carted away investors fund worth over $184,000.
CCID, according to a report by Times of India, has made four arrests over the Surat city crypto scam which was unraveled by the official, registering the 6th of its kind in the city.
The four culprits, Dhiraj Patel, Vijay Prajapati, Kamruddin Syed Ashiq Shaikh were arrested for creating KBC coin, a cryptocurrency allegedly designed to scam people.
A unit of KBC coin which was worth 10 paise at launch was branded with the ability of increasing investors’ wealth by 100-fold in no time with a high value of 10 rupees per coin.
A member of the state CID, Ashish Bhatia, said KBC was launched 6 months ago and investors were lured in to commit their funds. Ever since then, the crypto coin’s value saw no increase and the creator of the alleged Ponzi scheme went underground.
Baljeetsingh Lashkariya, the promoter of KBC coin, sponsored the coin to investors as ‘pyramid incentive’ saying: that the “first investor in the chain would get an incentive from the last circle of investors. This offer played a major role in bringing more investors to the company.”
CCID said Lashkariya and Mohan Patel, another member of the group, are on the run and authorities are on the lookout for both wrongdoers.
According to the report, a victim issued a complaint that she and her friends invested Rs 1.26 crore worth 184,073.40 US Dollar, but the authority claimed that it is likely there are more victims involved in the Ponzi scheme.
India Proposes 10 Years Jail Term for Using Crypto
If the bill is assented, anyone found involved in any crypto activity contravening the above law, would be liable to 10 year jail term as well as a fine which shall be thrice the amount gained or lost in the course of the action.
While the bill still awaits approval, the culprits of the above crypto Ponzi scheme, would be deemed liable for over 10 years jail term and huge fine if found guilty, once the proposed Bill becomes law.