Recently, a 32-year-old man was arrested for tricking people on the name of virtual currencies. The police received a complaint against Rohit Kumar, Rajendra Kumar Shah, Amit Lakhanpal, and some more people for cheating, money laundering, and violation of information technology act.
The police arrested Rohit Kumar, a resident of Burari, North Delhi. According to the police,
“In the complaint, the victims alleged that Kumar and his associates, through social media and personal invitation, urged hundreds of Indians and NRIs to invest their money in Money Trade Coin (MTC) of Flinstone Technologies Pvt Ltd,”
The Additional Commissioner of Police, A K Singla said that the accused promised the victims higher return on their investment than any other investment opportunity. They told that Money Trade Coin is a Dubai based cryptocurrency which can offer them lucrative returns. The accused used to organize events and conferences in five-star hotels and other lavish places to lure investors.
After the complaint, the police arrested Rohit Kumar and three of his teammates. Rohit Kumar was arrested by Delhi police while other members of the gang Vikram Manghera, Sachin Shailer, and Tah Quazi were arrested by Maharashtra police. One of the accused, Lakhanpal, is still absconding.
According to the RBI guidelines, cryptocurrencies are not a legal tender in India. RBI has even warned the banks that they must not do business with crypto related companies. Cryptocurrencies are not regulated in India. The RBI guidelines say that:
“The creation, trading or usage of virtual currencies, including Bitcoin, as a medium for payment is not authorized by any central bank or monetary authority. No regulatory approvals, registration or authorization is stated to have been obtained by the entities concerned for carrying such activities.”
This is not the first time that a crypto scam is happening in India. Before this, last month, Delhi Police had also arrested a man to trick the people investing in Kashhcoin. This gang also promised the victims that by investing in Kashhcoin they will make a huge profit.