Cryptocurrency Scam Worth Rs.26 Lakhs Unraveled In India

  • Five men booked in a cryptocurrency scam worth Rs 26.32 lakhs in the Palgarh district of Maharashtra.
  • Minister of State said that the government had issued a lookout notice against companies that had been found connected with Bitcoin scams.
  • The Ministry of Finance is in talks to bring in reforms to regulate the digital currency sector.

Five men booked in a cryptocurrency scam worth Rs 26.32 lakhs in the Palgarh district of Maharashtra. The filing of the report happened on 13th June. There are accusations on five people, for the procurement of money from investors in the form of cash and cheques. They allegedly gave evasive retorts on asking for returns.

The Case of Palgarh Scam

According to an official’s statement, there is the registration of a case under sections 420 (cheating) article 34 of the IPC with Boisar Police Station. However, there are no arrests yet. He further added that the main culprit had lured investors by promising lucrative returns in a cryptocurrency scheme from the year 2017 until 2020.

Digital and virtual currencies are termed as cryptocurrency in which encryption techniques are used. Moreover, it operates independently without any intervention from the Central Authority.

Investigation of Cryptocurrency Frauds and Legislative Steps

Per Minister of State, The government had issued a lookout notice against companies connected with Bitcoin or cryptocurrency scams. He had expressed his views in the legislative council during the current monsoon session of the state legislature. He further added that they would resort to Enforcement Directorate if needed. The Maharashtra government ordered a special investigation team (SIT) on Tuesday. This is for the investigation of all the cryptocurrency frauds across the state.

The minister said that no time frame had been allotted for SIT to complete its task because every case was at a different stage and would require a different amount of time. The government gave the assurance that the registration of the offenses took place under the Maharashtra Protection of interests of depositors act, Money circulation act, and information technology act.

The AI-powered sector has lots to offer users. However, without any intervention from any central bank, it has been turned into turmoil for some. Further, the Ministry of Finance is in talks to bring in reforms to regulate the digital currency sector. Contrary to the Supreme Court’s ruling, they went in favor of banks willing to help organizations using cryptocurrency. There are no arrests of the accused yet. But, it’s only a matter of time before rules and regulations are in place to prevent such crimes from taking place.   

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