New $75 Million Cryptocurrency Fraud In India Rattles The Startup World

Must Read

Can CBD Gummies Be Beneficial For College Students?

College students often feel more pressure than they have ever—or will ever—feel in their entire lives. Many...

Cloud Computing is Redefining the Education Industry!

Today, the benefits of cloud computing are being recognized in educational industries around the world. Most of...

Will You Buy iPhone 12 Pro At US$20,500?

if you are suspecting any typo error here, you are highly mistaken! The price of iPhone 12...

The hype of cryptocurrency in India has started showing its side effects. One after another the so-called role models of crypto-preneurs are getting exposed as they are accused of running their cryptocurrency based startups like a Ponzi scheme.

As per reports by Hindustan Times, another big-shot in cryptocurrency, Amit Lakhanpal has been on the loose, after Mumbai police accused him of masterminding a $75 million crypto-currency Ponzi scam. The crime branch in Thane busted a racket wherein several investors across the country were being duped by a gang in Crypto-currency Ponzi schemes, on June 5th. According to the police, this fraud diverges from Rs 300 crore to Rs 500 crore.

Confirming to reports, the scam was a mastermind’s brew, hatched by The Flint-stone Group –  apparently, a dubious real estate company. Flint-stone Group’s crypto-currency known as MoneyTradeCoin (MTC), was a rope-in snare for investors who were lured by high-returns dream and invested a great deal, for the same.

Advertisements

Additionally, Crime-branch of Thane has detained another Mumbra-resident, dubbed as Taha Kazi. He is, apparently, a prime technical support staffer at the company and is likely to be in the back of the driver’s seat.

The Plush-And-Plump Scam Artist

MTC, which is jointly owned by Dubai based firm Bitcoin Global FZE, UAE and Money Trade Coin Ltd, UK. Dr. Amit Lakhanpal, the Director of Money Trade Coin Ltd., has left no stones unturned in promoting their company. Given this, promoters brag how MTC is a safer and superior alternative for investors to invest more in form of digital currency. However, in a completely contradictory note, the recent findings depict the fraudulent side of the company wherein investors are being misled with promises of real estate or high returns.

Uncovering the Extravagant Ploy

India Today reporters posed as investors met office bearers of Flint-stone Group in Thane. Disguised as affluent investors, and pitching in investments worth crores of rupees worked out in favour of the reporters. An alleged senior official of MTC, Digamber Jangle was clearly hooked on the deal. He went on to claim that sealing this deal might pave way for a secured bond, accompanied by a citizenship in a Caribbean country. This official boasted about their connection with governments of Antigua and Barbuda island and how their coin would soon be a legal tender in some of the peripheral countries.

By luring investors with huge returns and a secured estate was phase one for the whole scam, wherein phase two was much easier i.e., escaping with the money.

There has been much whistle-blowing by sections of Indian media’s about Lakhanpal and his crypto scam since the day of its launch. With, aptly, no shut-eye, a cursory online check on his so-called business history uncovered how this crypto-currency was just one out of twenty-two businesses, established within a year, with a share capital value of one GBP.

Advertisements

Lakhanpal and his associates were accused of making promises to investors of a 20-times return on investment over a period of six months. However, on the deadline being crossed, no amount was released. When some investors went to Dubai, they were threatened and sent back. In addition to the misery, there’s no building in the name of Lakhanpal, who was supposed, running a real estate company.

India’s Second Ponzi Scam; Behind The Scenes

The number of cases related to cryptocurrency frauds in India is on the rise. People are falling prey to these frauds in a lust of mind-boggling returns.

In May this year, Gujarat police arrested eight rogue policemen and arrested two of them for kidnapping and allegedly extorting Bitcoins worth Rs 120 million from a Surat-based businessman.

But the biggest bitcoin scam in India was done by another startup founder Amit Bharadwaj, who allegedly duped people for $300 million. Bharadwaj was the kingpin behind India’s largest cryptocurrency fraud till date. His dramatic arrest in April this year exposed a lot more about the ongoing cryptocurrency frauds in India, and about high profile businessmen associated with it.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

After Facebook, Now Twitter is Caught Abusing Phone Number For Ads

Thanatophobia, or fear of death, is a relatively complicated phobia. Similarly, fear of losing your digital accounts to...

Warren Buffett’s Stake In Apple Is Worth More Than Combined Valuation of All Startup Unicorns in India

The Oracle of Omaha has got an eye for a good bet and it's proven time and again. Once a popular critic...

Microsoft Aims Global Acquisition Of TikTok, Including India!

It seems like TikTok can finally shed its Chinese origin from all over the world. It has recently...

Will Google’s Move To Delete 2,500 YouTube Channels Add Fuel To The Fire With China?

The US-China trade war has started rearing its ugly head. Both sides are now turning to extreme measures on the digital front...

Will You Buy iPhone 12 Pro At US$20,500?

if you are suspecting any typo error here, you are highly mistaken! The price of iPhone 12 Pro is US$ 20,500 now...

Google Is Shutting Down Google Play Music

Google Play Music will soon be buried in Google's graveyard. The company has announced that by December the service will be completely...

In-Depth: Dprime

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

Fantastic 4: Four Day Work Week A Flashpoint Of Innovation?

It has been an idea that has been mooted by many, perhaps also somewhat sceptically. From being a dark horse to becoming...

More Articles Like This