Indian Police Raid Scam-Funded Crypto Mine

Avi Rosten
  • Delhi Police's Cyber Cell raided the operation north of Delhi to find over 100 Ethereum mining rigs
  • The Police report explains that the mining operation was funded by a $15 million crypto Ponzi Scheme

Police in India have raided a large cryptocurrency mining operation alleged to have been funded by a $15 million Ponzi Scheme.

According to the Times of India report, Delhi Police’s Cyber Cell (DCP) raided the 4,000 sq ft. complex in Dehradun - 150 miles North of New Delhi - to find a large setup of over 100 Ethereum mining rigs “comprising high-powered computer processers, 500 graphics cards and servers.”

Kimal Singh, a graduate of Delhi University, and engineer Vijay Kumar - two of the ringleaders of the enterprise - were originally arrested on April 25th for an alleged crypto Ponzi Scheme. Amassing over $15 million from victims, police report that they had used the site bits2btc.com to promote the scheme and had even sold their own fraudulent cryptocurrencies named HBX and Mcap.

Using the funds to set up the mining operation, the suspects told curious neighbours that it was a server farm for a large company. Police report that the enterprise was employing eight people to operate and maintain the rigs, and estimate that it had already generated $105,000 worth of ETH before being shut down. A third suspect, S.S. Alagh - alleged to have been a co-founding member - is still at large.

Asian Scams

This latest incident is by no means the first to hit the news in recent months. In April, police in China arrested nine suspects for an alleged $13 million crypto pyramid scheme, while the Chinese Ministry of Public Security in January specifically affirmed their commitment to tackling the new wave of crypto scams.