The crime branch arrested four and accused that the gang involved in cheating people for Rs. 100 crore in cryptocurrency. Mumbai, Surat and Uttar Pradesh Police successfully busted the cryptocurrency racket reports Times of India on 17th February.
A year ago the gang started a cryptocurrency and named it as Cashcoin and promised investors to double their investment in two months the accused held meetings in Mumbai, Surat and other parts of Gujarat and influenced people to invest their hard earned money but their intention was to cheat said by police.
The complaint was lodged by Umeshchand Jain, a resident of Surat and alleged that the accused cheated him on Rs. 1.2 crore. During the investigation, police learned that the accused had siphoned off the complainant’s money by transferring the amount from his Surat branch bank account to the account in Uttar Pradesh The crime branch has registered an offense of cheating, breach of trust, criminal conspiracy under Indian Penal Code and sections the Information Technology Act. Sources said that the police are likely to invoke the Maharashtra Protection of Intrest of Depositors Act and the Chit Funds Act as well on all the four accused.
An advocate of accused said that the Indian Penal Code sections 419, 420, 406 and 409 are not applicable in this case as no one has been cheated since all transaction is in cheque payments and further says his clients are innocent and have been wrongly arrested.
Across the world, there have been heightened concern over cryptocurrency, also known as virtual currency but these are not regulated by government or central banks, leading to money laundering fears. The Reserve Bank of India has discouraged investment in cryptocurrency.