You do not necessarily have to be a bitcoin or any other cryptocurrency enthusiast to know the scenario of Bitcoin crimes happening in India. The word Bitcoin was already very speculative, owing to its price, as a result of which, there are several bitcoin frauds, scams and crimes being carried out in India.
Recently, around 8,000 investors are said to have lost around Rs 2,000 crore to the scam, purportedly the largest in India involving cryptocurrencies, allegedly run as a multi-level marketing scheme by Amit Bhardwaj, the founder of BTC-based investment website GainBitcoin. Bhardwaj had allegedly lured investors by promising them handsome returns. He would allegedly promise 10 percent returns for investing one bitcoin but did not keep his word.
British Businessman and Shilpa Shetty’s husband Raj Kundra was enquired by the Enforcement Directorate over having links to the same case.
In another bitcoin scam a few days back, the Criminal Investigation Department (CID) of India took statements from an Indian businessman who extorted 2000 bitcoins from crypto project proponents Bitconnect fraudulent money to investigate the operation of the company.
Shailesh Bhatt, was the one who gave in to the vision of the company and brought the program “1.1% profit per day” to the company. business. However, when the company invariably showed its inability to repay its money, a rabid Bhatt was tied up with eight other people on Mavani in December 2017, and extorted 2,000 bitcoins from the developer.
Here are the types of bitcoin crimes that are often taking place in India:
Fake apps and social media accounts: Fraudsters are now sacking money via fake apps which now have have been flooding the app stores. In other cases, counterfeit websites and Twitter handles are used to dupe gullible investors. For instance, users of Zebpay, a cryptocurrency exchange in India, received messages asking them to deposit a certain amount of money as part of a survey in exchange for bitcoins. These messages were sent out from a Twitter handle that looked very similar to Zebpay’s actual account.
Ponzi schemes: Another good method of gaining Bitcoin is via constructing presenting Ponzi schemes which promise unbelievable return, tempting people to put in their money for a bigger investment return. In another Bitcoin ponzi scheme other than Amit Bhardwaj’s, last week the police in Maharashtra’s Thane district on Monday busted an online cryptocurrency racket, in which a gang allegedly duped several investors of nearly Rs 500 crore. The police also arrested one person, but the scam’s kingpin, Amit Lakhanpal has escaped.
Exchanges under attack: In April, Coinsecure, a New Delhi-based cryptocurrency exchange, was robbed of 438 bitcoins worth Rs20 crore. The firm named an employee in a first information report filed later that month, while promising to refund money to its investors in due time. It’s the first time that an exchange came under attack in India. But, globally such cases are well known.
Recently, Bitcoin Gold also suffered a major 51% attack after Monacoin, Verge.
Ransom: The surge in the cryptocurrency prices, specially Bitcoin has drawn investors and swindlers alike. Now, tech-savvy kidnappers in India have also been asking for bitcoin as ransom. In April, nine police officers in Gujarat were held for extorting 200 units of a digital currency from a businessman.
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