Cryptocurrency Scam in Madhya Pradesh: Bhopal Police Arrest Two for Cheating People on Pretext of Investment in Crypto
The modus operandi of the accused involved operating the investment through a website. Initially, they made small payouts to create an illusion of profitability. However, when someone had a significant payout, the accused abruptly stopped it.
Bhopal, May 11: The cyber crime wing of Bhopal Police has arrested two persons on Saturday for allegedly defrauding people under the pretext of cryptocurrency investment, officials said on Saturday. The arrested accused have been identified as Trilok Patidar (35) and Amar Lal Wadhwani (42), both residents of Bhopal.
According to officials, the accused lured people into investing in Gold Desert Coin (GDC) by promising that its value would skyrocket like that of Bitcoin in a few days. Cryptocurrency Investment Fraud: Two Arrested for Duping Several Investors in Odisha and Maharashtra.
The modus operandi of the accused involved operating the investment through a website. Initially, they made small payouts to create an illusion of profitability. However, when someone had a significant payout, the accused abruptly stopped it.
"We have arrested two accused who were cheating people in the name of investment by setting up a cryptocurrency exchange. They created a website where people were induced to invest and were deceived with promises of high returns," said Additional DCP (Crime) Shailendra Singh Chauhan to ANI.
Ponzi Scheme investments were made, and thousands of customers were persuaded to invest in it. When the crime branch scrutinized their website and bank account, they discovered that around Rs 5 crore had been defrauded from people. Crypto Fraud: MBA Student in Nagpur Promised Lucrative Returns in Cryptocurrency Investments by 'Advisor' on Telegram, Loses Rs 23 Lakh.
Apart from Madhya Pradesh, the racket operated in Uttar Pradesh, Jharkhand, Orissa, and Maharashtra. The accused conducted seminars in prominent hotels to persuade people to invest. "During the investigation, we learned that the mastermind behind this scheme is believed to be in Dubai. We are currently investigating the matter and will take action against that individual," he said.
Additional DCP Chauhan further stated that the action was taken following a complaint lodged with the cyber crime wing of Bhopal Police. "We received a written complaint regarding this, after which we investigated and uncovered this fraudulent exchange. We inquired about its registration and the firm's registration, gradually unveiling all the layers of the fraud. Upon examining the account details, we discovered the extent of this large-scale racket. So far, we have arrested two individuals, and further action will be taken as the investigation progresses," he added.
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