Four Arrested in India in Connection With a $14 Million Cryptocurrency Fraud

India Crypto

A number of cryptocurrency scams have already been reported across India where fraudsters have offered lucrative “oppoetunities” to victims, promising them multi-digit returns over their initial investments.

In another such crypto fraud case that was recently reported, the police arrested four people from Surat, Gujarat. It is believed to be the sixth crypto scam in Surat alone, officials said. According to India’s leading newspaper, The Times of India, the police received a complaint about over a $14 million crypto fraud from multiple victims but the amount and the number of victims reported by the police are likely to be much bigger as investigated by the state’s Criminal Investigation Department (CID).

The CID said that the fraudsters launched the cryptocurrency, KBC Coin, at the price of 10 paise and lured investors in by promising them to convert those 10 paise into 10 Rs in almost no time (which is kind of like promising $10 for each 10 cents). the accused includes Vijay Prajapati, Dhiraj Patel, both residents of Mehsana; Ashiq Shaikh, a resident of Palanpur; and Kamruddin Syed, a resident of Bharuch. The Police has already arrested them and the interrogation has already been started. The promoters of KBC Coin, Baljeetsingh Lashkariya, a resident of Mumbai, and Mohan Patel, a resident of Surat have managed to escape.

Rajesh Maniya along with his friends and family invested nearly 1.26 crore in KBC Coin and reportedly lost all of it. As per the CID investigation, Rajesh and friends aren’t the only victims duped by the accused and the amount that the fraudsters had scammed is much bigger than reported.

False Promises that the Cryptocurrency’s Value Would Increase

KBC Coin was first launched 2 years ago at the base price of 10 paise, and the gang of four entrapped thousands of individuals into investing in the scam, saying that the value of KBC Coin would increase rapidly and would grant phenomenal returns in a very short period of time. The police said that the main promoter, Baljeetsingh Lashkariya, opened additional company branches in Ahmedabad, Palanpur, and Mehsana.

“The value of KBC coins never increased and within six months, the promoters went underground,” said Bhatia.

The CID has already filed a case against the four accused under Section 406, 420, 409, 120 (b), Prize Chit Money and Circulation Act 4, 5, 6 and GPID Act 2003. The company floated by Lashkariya wasn’t registered and didn’t have the necessary permissions to operate a crypto business, said Gujarat police which has been investigating the case.

“We have asked the citizens to come forward with their complaints about the same or other schemes with similar modus operandi,” said a senior CID official.

KBC Coin has joined the list of cryptocurrency scams such as BS coin, Regal coin, Dekado coin and Torus coin.

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