The Mumbai Crime branch, in India, has uncovered the gang behind a $13 million (INR 100 crore) cryptocurrency scam, which was spread over the states of Maharashtra, Gujarat, and Uttar Pradesh. The scammers had launched a scam coin, dubbed Cashcoin, which was claimed to be similar to Bitcoins. The gang cheated people by promising them double returns within two months, as reported by The Times of India.
Sunil Jadhav, one of the key police personnel who busted the scam, has stated that the gang had conducted several meetings in different parts of Mumbai, Surat and Gujarat to attract people to invest in Cashcoin, by assuring them double returns with a short term. Initially, as promised, the fraudsters repaid the investors with double their amounts with an intent to attract more investors.
The first complaint against Cashcoin was made by Umeshchand Jain, a Surat resident, where the complainant stated that the accused had withdrawn INR 12 million from his bank account in Surat and transferred it to another account in Uttar Pradesh. In consequence, police has blocked several bank accounts and charged the accused with Indian Penal Code Sections 419, 420, 406, and 409.
Earlier, during January 2019, the Indian police had arrested an accused for being a part of a crypto scam involving about $71.6 million (INR 5 billion).