Indian authorities dock seven for their involvement in a crypto Ponzi scheme

Indian authorities have docked seven individuals for involvement in a cryptocurrency Ponzi scheme. The Central Bureau of Investigation (CBI) mentioned in their statement that the individuals ran multiple crypto Ponzi schemes, promising unsuspecting victims high returns on transactions exceeding 350 crore.

According to a statement released by the agency, it carried out raids and searches across different locations, including States and Union Territories at Madhya, Delhi, Pradesh, Rajasthan, Gujarat, Jharkhand, and Tamil Nadu.

According to the Indian authorities, the searches turned up several pieces of evidence that tied the individuals to the act. The CBI mentioned that it recovered cash worth 34.2 lakh, along with other digital evidence that will aid their investigations. The police discovered seven mobile phones, three hard disks, one laptop, one tablet, 10 thumb drives, memory cards, email accounts, debit cards, and other incriminating documents.

Indian authorities nab seven criminals involved in crypto Ponzi scheme

According to the Indian authorities, other evidence of their criminal activities also turned up, with the highlight being a digital asset stash totaling $38,414. The agency noted that the wallets containing the assets have been confiscated, as it will aid in their investigations. However, the agency did not specify if it took the wallet keys from the criminals. The authorities mentioned that the individuals ran multiple crypto Ponzi schemes, operating differently while being under a single umbrella.

The Indian authorities mentioned that the criminals were based in Delhi, Chittorgarh, Ratlam, Hazaribag, Pudukkottai, Bathinda, and Valsad, carrying out their criminal acts with reckless abandon. Aside from their crypto Ponzi schemes, the Indian authorities also mentioned that the group also floated several high-yield crypto investments, promising their unsuspecting victims of suspiciously high return percentages.

The CBI mentioned that after the wallets and bank accounts were confiscated, they tied several funds from the groups’ illegal activities to both accounts. The Indian authorities mentioned that the criminals funneled their ill-gotten funds through several places, and eventually moved them into their crypto wallets to obscure the origin of the funds. The authorities also accused them of promoting false investments and disseminating false information to entice investors into their illegal schemes.

The CBI vows to prosecute the criminals

The CBI also mentioned that the criminals also started their various fake investment schemes, carrying out unregulated deposits without express approvals from the relevant bodies. Usually, entities carrying out services requiring investments have been mandated to forward several documents to the Reserve Bank of India (RBI), asking for approval. It is after checks that the business is legitimate that the RBI will approve such investment schemes.

The Indian authorities also noted that investigations are already underway to find out the extent of the group’s crimes. The agency will carry out investigations, finding out those that provided help to the criminals. The CBI also mentioned that it has filed the case under Section 120B, read with Section 420 of the Indian Penal Code (IPC) and Section 66D of the Information Technology Act, 2000, against the seven suspects.

This incident also underscores the need for investors to be vigilant in the crypto sector, as cases like these have become rampant, coming with mainstream adoption. A typical example was the case of an accountant who was swindled after investing her pension funds into a a fake crypto investment, without finding out if it was legitimate. Although regulators and agencies are trying to get ahead of the situation with the needed regulations, it remains to be seen how they will achieve it. The criminals have also become clever, disguising their investments with high-yield strategies. Investors are warned to desist from patronizing platforms that have not been proven trusted.

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