The Indian government can impose restrictions on cryptocurrency trading in the country as much as it pleases, but local fraudsters and fraudsters can not be put off.
The police in India's Mumbai financial center have a resident, Pritam Patil, who deceived $ 250 out of 12 people in an alleged crypto currency fraud.
According to a report by the local daily The Hindu, the defendant called on victims to invest in the initial offer of coins (ICO) of their new cryptocurrency "KBC Coin", promising good returns. The victims were assured that a $ 0.0056 KBC coin would rise to $ 1
The ICO system appears to have operated since at least the cryptocurrency market from November to December 2017, but it is fraudulent. It was not until Thursday last week that a Nanasaheb Patil was filed with the local police.
According to the victim's report, Pritam Patil and his colleague Pintu Bajaj visited his office for months and asked them to invest in the KBC coin, which was cleverly named after Kaun Banega Crorepati (KBC) popular Indian version of "Who Wants to be a Millionaire?" hosted by Bollywood superstar Amitabh Bachchan in the ICO. The victims claimed to be paid only in cash and did not show any registration documents of the company. The victims nevertheless opted for an investment for already well-known reasons anyway.
Following the investment, the defendant changed the name of the cryptocurrency to AFC Mint coin, and the site was closed in September 2018. When the victim contacted the defendant, he told Man that his business was closed and the victims would no longer receive any return on their investment.
The company's website is no longer accessible, but a February 2018 Hindi Youtube video warns users of potential ICO scams.
This is not the first time that a cryptocurrency fraud has been detected in Mumbai. In June of last year, local authorities discovered another $ 75 million ICO scam, the so-called Money Trade Coin (MTC), in which a police officer was among the defendants.
Crypto-currency fraud investigations in India are often deadlocked as victims refuse to testify Due to regulatory uncertainty surrounding virtual currencies in the country.
It is often difficult to distinguish a fake ICO from a true one, but many naive investors have relinquished half-burned brand websites without fulfilling their due diligence
The US Securities and Exchange Commission (SEC) judges previously used a fake ICO website to warn cryptocurrency investors about such scams. Perhaps India can also benefit from similar educational programs for the safe handling of cryptocurrencies.
Published February 26, 2019 – 11:23 UTC