Four More Suspects Arrested in $14.5 Million Cryptocurrency Scam in India

  • A crime uncovered last month involving a fraudulent crypto investment scheme has seen four more Indian men taken into police custody.
  • The 100 Crore, or $14.5 million scam, has been carried out by promoting a fake crypto called "Cash Coin."

The crime branch of the Indian city of Mumbai has reportedly cracked down on another fraudulent cryptocurrency-related investment scheme.

In this particular incident, Indian officials have taken four additional male suspects into custody - after uncovering what appears to be one of several new scams involving cryptocurrencies. According to the Times of India, local authorities have also managed to track down and arrest the “kingpin” or the main individual allegedly involved in orchestrating the recent cryptocurrency crime.

Four Arrested In New Delhi

As detailed in the incident report, Indian police officers from local crime branch unit XII arrested Ashok Goyal Jaipuria, Asif Malpani, Baljit Singh Saini, and Pradeep Arora in India’s capital, New Delhi. The arrests were reportedly made last Monday (March 18, 2019). As noted by local news sources, the men who allegedly carried out the crime, had embezzled 100 Crore (appr. $14.5 million) from several local investors.

Police authorities have now reportedly frozen the bank accounts of the accused - which includes Goyal’s account, who’s believed to be the mastermind of the crypto scam. In addition officials will be questioning a Bollywood actor, which may have presumably been involved in the crime.

Four Others Arrested Last Month

Other individuals arrested last month by Indian authorities include Rajnikant Kumawat, Alpesh Barodia, Sanjay Sontakke, and Kirankumar Panchsara. These four men were also allegedly involved in promoting the same cryptocurrency scam and were taken into police custody from various Indian cities including Surat, Mumbai, and Uttar Pradesh.

According to a report filed by Umeshchand Jain, who’s reportedly one of the victims, the scammers stole Rs. 12 Crore (appr. $1.7 million) from him - after luring him into the allegedly fraudulent crypto scheme. Jain noted the suspects had been conducting promotional seminars throughout India. During these events, the accused targetted local investors by asking them to invest in their questionable cryptocurrency business.

Promising Significant Returns On Initial Investments

Similar to how other scams are promoted, the accused had been promising huge returns on relatively small amounts which were to be invested in a crypto-related investment plan. Commenting on the matter, Sunil Jadhav, a senior inspector at crime branch unit XII, remarked:

The gang launched Cashcoin, a cryptocurrency similar to Bitcoin, a year back, and initially showed profits to few investors and gained their confidence. They thus got more investors and duped them.

Jadhav confirmed that the accused had planned to cheat the victims by promising them at least double in return on their initial investments. As detailed by local news outlets, the Indian crime branch has registered an offense involving “breach of trust, criminal conspiracy under Indian Penal Code and sections of Information Technology Act.”