Home » Two arrested in India over allegations of $12m Crypto fraud who conned more than 1,400 investors

Two arrested in India over allegations of $12m Crypto fraud who conned more than 1,400 investors

by Tech Reporter
6th Sep 22 5:03 pm

Authorities in Maharashtra, a western Indian state, have detained two men on allegations of running a crypto scam, CoinDesk reported. Ritesh “Pancha” Kumar and Mohan Patil are believed to have conned over 1,400 investors, making away with as much as $12 million.

According to the Economic Offences Wing (EOW) of Thane Police, the men were arrested after raids in two Mumbai regions, Thane and Powai.

The mastermind and the agent

Kumar and Patil were the mastermind and the agent respectively. Patil lured clients from across India into the scam. The two remain in jail.

Read more related news:

Hollywood actor has around $185,000 stolen at NFT auction raised for charity

Hackers stole $625 million in the Ronin bridge exploit, which affected Sky Mavis’ validator nodes

US ‘Kidnaps’ Russian money launderer in Netherlands who laundered at least $70m in Crypto

Ruja Ignatova is on the FBI’s Most Wanted list for laundering $105 million of the global OneCoin scam

An officer from the EOW said, “In court, while securing custody, we stated that based on currently available information the scam is worth 6 crore ($750,000), but we estimate the amount to be upwards of 50 crore and below 100 crore.

“Some discrepancies in the amount of money associated with each of the 1,400 or so investors have emerged.”

False promises

The scam involved cheating investors with false promises of huge returns. The setup was simple: the more you invest, the bigger the excepted returns.

The investors were lured into buying two crypto tokens called Magic 3x and SMP, which were not listed on any exchange.

More and more victims emerge

So far, the damage amounts to 4.4 million rupees, which a total of 24 investors have lost. According to police, more and more people are coming forward and the number is increasing.

Another officer added, “The culprits would lure customers promising rates of interest ranging from 0.05% to 1% per day depending on the amount invested.

“If 24,000 rupees were invested, the rate of return was 0.05% per day with the promise that within 20 months that amount would triple to around 72,000 rupees.”

Leave a Comment

You may also like