12 Delhi-based businessmen have simultaneously registered a complaint in the police station about having lost lakhs of rupees to a Malaysian cryptocurrency firm. Businessmen from different parts of the capital were introduced to the Malaysian company through advertisements on various media portals. According to Anto Alphonse, DCP (Dwarka), in charge of the investigation, the police have booked some representatives of the company under IPC Sections of cheating (420) and criminal breach of trust (406).
It was confirmed by a preliminary probe that a conference was organised by the company in March 2017. The businessmen from different parts of the capital attended the meeting with the help of a common friend. The CEO and India representative of the Company gave them assurance of authenticity. He said that their ingenious cryptocurrency firm is duly listed at all the major exchange firms involved in its trading. The businessmen were also convinced that several people have made investments in their company.
During the investigation, it was figured out that another set of the meeting was organised by the company. Here, the businessmen were informed about a new scheme which would give quick returns. As per the scheme, Rs. 80,000 was the minimum joining fees. The said fees would entitle the businessmen to get some crypto coins and a trading account registered with the company. The company also had a multilevel marketing scheme named “Ponzi scheme” which would derive more profits on the condition of more people joining through their network.
However, it was revealed that the cryptocurrency was delisted in September 2017. Though the reasons were not known, its value turned down to zero. According to the police, the company had started a new venture and offered a return but after some time, the coin withdrawal had stopped completely. The blockchain data of the Malaysian company will be scrutinized by the Police. The representative of the firm in India along with the owner is asked to join the investigation.