Indian Police Arrest Crypto Fraudster Accused of $31 Million Fraud
In particular, the cryptocurrency industry has expanded its borders in India in recent years. But unfortunately, cybercriminals and crypto fraudsters have also stepped up their efforts to loot investors’ hard-earned money in this sector. As a result, it put law enforcement forces on their toes and led the authorities to tighten regulations.
Similarly, the Indian police force in the country’s second most populous state, Maharashtra, busted a scam in Thane city that allegedly took the money of 1,441 investors and disappeared into thin air, according to the country’s local media.
Related reading: Rising crypto-crime forces Australia to set up dedicated police unit
The report estimates that the crypto fraudster may have looted the money significantly, over 2.5 billion rupees ($31.2 million). Notably, only 24 investors have turned out to submit their cases so far. They lost a combined $55,085 in the scam.
To get investors to dump their money, the scammer ran two fake programs on the platform called ‘SMP’ and ‘Magic 3x’.
The specialized task force of Thane police department, Economic Offense Wing (EOW), which investigates economic offences, took the criminal into custody.
Besides the blockchain development and local people’s interest in crypto in India, the government has been aggressive with digital assets since its inception. For example, the Indian government has has hinted at a 30% tax on crypto profits.
India plans to regulate crypto via strict regulations
India’s Enforcement Directorate (ED) recently launched an investigation against exchanges and seized the assets of a few trading platforms in the state. The authority accused exchanges of facilitating money laundering by circulating digital currency assets.
After the ED froze the assets of two crypto exchanges in August, including Wazir X and Vauld, the county’s finance minister, Nirmala Sitharaman, appeared to warn investors and the public about the crypto.
Speaking about the seizure, Valud explained that the platform has cooperated fully with the authority and provided all types of data controllers needed. And the agency confiscated the firm’s assets only because a nefarious actor used the platform and then deactivated itself from the exchange.
The company added;
“We respectfully disagree with the freezing order. We follow strict KYC requirements in all countries, including India. We are seeking legal advice on our best course of action to protect the interests of the company, its customers and all stakeholders.”
The finance minister also highlighted that in view of the growing risks associated with virtual assets, public authorities are in the process of creating new regulatory rules to tackle cryptocrime.
Related Read: Poolin Mining Pool Freezes BTC and ETH Withdrawals, Citing Liquidity Issues
Since the US Fed’s hawkish approach to digital assets has fluctuated the prices of crypto, India’s new policy is likely to affect the market.
India, the second most populous country on earth, has 115 million crypto investors, representing 15% of the population who have bought or sold the digital currency in the past six months, according to the KuCoin report.
Featured image from Pixabay and chart from TradingView.com
