Top Cryptocurrency Frauds in India
Cryptocurrency is the trending one in currency market of India. Many people don’t know about complete details about cryptocurrency. In India there was slight confusion is cryptocurrency is legalized or not. But in small span, some big frauds was taken place in Cryptocurrency market in India. Let’s know the scam details of Cryptocurrency in India.
The biggest scam in cryptocurrency market is the Ponzi scheme. This scam around looted 13,000 crores.
Ponzi scheme and Crypto currency
In this scheme the well-known Bitcoin entrepreneur and guru of Cryptocurrency in India, Amit Bhardwaj was arrested in the crypto scam. According to scamming records, 2,000 crores was looted in Maharashtra alone. The ventures that has run by Bhardwaj are GainBitcoin, GBMiners, MCAP, and GR12.
GBMiners was the pioneer of Bitcoin mining in India. Finally, Amit Bhardwaj was arrested at the Bangkok airport after escaping from India. According to reports Bhardwaj scammed around 5,000 crores to 13,000 crores. He used a flash drive to store the cryptocurrency investment.
How scam was executed:
He launched India’s first cryptocurrency based online retailer, called HighKart. He adopted a multi-level marketing (MLM) model to draw investors Bitcoins. In December 2015, he introduced GBMiners investment option with a promising note of returns with 10 percent. In the year 2017, May he introduced his own cryptocurrency token called MCAP as a payout option to the investors.
As per the complaints, the terms and conditions of the GaintBitcoin was suddenly changed in overnight to replace with MCAP as the only way for investors to pay-out. Within the same time, the GainBitcoin website was closed in the mask of maintenance. But Bhardwaj already escaped from India before taking place all these activities.
This was one of the largest scams in cryptocurrency market in India. He used mainly Bollywood celebrities to attract the investors. Recently Ponzi scheme suspect Amit Bhardwaj was arrested.
Kashhcoins cryptocurrency site scam:
Another scam in India is the Kashhcoins site which looted nearly $7.79 Million. The kashhcoins website in India looted people in Delhi and other parts of India. The main accused in this scam is Narendra Dahiya and other eight members.
How scam was executed:
The gang created a cryptocurrency coin named as Kashhcoin and they kept this coin on the website to sell. They started their scam with a unique combination of cryptocurrency and multi-level marketing. They offered the buyer to add their families to get incentives for joining them.
They propagated that they have a finite number of Kashhcoins with maximum amount is 2,515,020,000. They popularized the coin as it was cannot be affected by inflation and impossible to counterfeit. They promised the investors they will return 10% for every five years above the profit. The coin was priced at $0.5 means in INR 3.5.
After this gang was arrested after FIR filed on them and they collected as per records they have scammed nearly $7.79 Million in INR 50 crore.
There are still small scams operated in India where some people offer to sell bitcoin fro cash and when buyer go to them then they snatch their money on gunpoint, so avoid dealing with anyone stranger who offers to sell bitcoin.
Conclusion:
These are the some of the scams that took place in India in Cryptocurrency market. Even some exchanges are also involved in scams of Cryptocurrency market. In one word Cryptocurrency market in India is not strong enough for investors.