The CID has unearthed another Cryptocurrency scam in India. The Gujarat law forces have arrested four individuals suspected in connection with an alleged cryptocurrency scam. The accused Vijay Prajapati, Dhiraj Patel, Kamruddin Syed, and Ashiq Shaikh are alleged creators of “KBC Coin”, a cryptocurrency. The CID argues it to be a Ponzi Scheme.
The perpetrators lured people into investing in KBC Coin with the promise of converting .10 paisa into 10 rupees “in no time.” One of the promoters Baljeetsingh Lashkariya actively promoted the Ponzi scheme in various parts of the Gujarat state. Lashkariya promised thousands of investors exorbitant returns for investing in the financial product. The promoters have gone underground.
It’s worth highlighting that this is not the first time that law forces have witnessed these kinds of cryptocurrency scam in India. Also, this is the second time Gujarat has encountered a crypto scam. Last month the state CID unearthed a multi-million dollar crypto scam. In February, Mumbai Crime Branch uncovered a $13 million crypto scam.
According to the new crypto regulatory policy, the person responsible for crypto scams will get imprisonment for 10 years. But the regulatory policies have also forced many cryptocurrency exchanges to shut down. The crypto firm Koinex also called it quits in the crypto domain for this reason.