• Home
  • National News
  • Cryptocurrency fraud: Beware! Save your money - How not to fall into this cheating trap
Cryptocurrency fraud: Beware! Save your money - How not to fall into this cheating trap
National  
zeebiz

Cryptocurrency fraud: Next time someone approaches you to invest in virtual currency, beware!

 

Cryptocurrency fraud: Next time someone approaches you to invest in virtual currency, beware! The fraudsters may approach you through social media or e-mail, or even a phone call. But remember, creation, trading or usage of virtual currencies including Bitcoin as a medium for payment is not authorized. Here is an eyeopener case you would like to read. This week, Delhi Police have arrested a 32-year-old man for allegedly duping people in the name of cryptocurrency or virtual money. The accused was identified as Rohit Kumar, a resident of Burari. Victims had filed a complaint of cheating, money laundering and violation of Information Technology Act against Rohit Kumar, Amit Lakhanpal, Rajinder Kumar Shah and others. 
 
The victims alleged in their complaint through social media and personal invitation, Kumar and his associates urged hundreds of Indians and NRIs to invest their money in Money Trade Coin (MTC) of Flinstone Technologies Pvt Ltd.
 
To gain the trust of victims, the accused used to tell the former that the virtual currency was Dubai-based and promised them higher returns. Moreover, they also used to organise conferences and other lavish events at 5-star hotels to lure the unsuspecting victims. 
 
What the law says
 
As per the RBI guidelines, "The creation, trading or usage of virtual currencies, including Bitcoin, as a medium for payment is not authorised by any central bank or monetary authority. No regularity approvals, registration or authorisation is stated to have been obtained by the entities concerned for carrying such activities". 
 
"In spite of such clear cut instructions of the RBI, the accused persons in connivance with other accused launched this cryptocurrency namely MTC in July 2017. In order to lure the investors the accused persons conducted lavish promotional functions/seminars at various prominent hotels located in Delhi and Mumbai," police said.
 
They further said that it is not only a case of mass cheating but also attracted the sections of The Prize Chits and Money Circulation Schemes (Banning) Act, 1978. "This is a case of mass cheating where the accused persons took money from innocent public and duped the investors to the tune of several crores of rupees."
 
"The accused person was living a lavish lifestyle with the help of cheated money and was using Maruti Breza Car."
 
Shocking fact about the accused
 
Police said that the accused person Rohit Kumar has done 12th in 2003 and BA in the Year 2007. Thereafter, he came to Delhi and from time to time worked at SMC Global Securities Ltd., India Infoline, Standard Securities Ltd., GM Financial Services Ltd. and franchise of Capital Market of Kotak Mahindra Bank. Kumar left his last job in July/August. 2017 and came into the field of Virtual Cryptocurrency/Multi-Level Marketing (MLM)for easy money and used their contacts to extend this business of cheating people.
 

 
 


 
 


 
More in National
Bangladesh 'Tree Man' Wants Hands Amputated To Relieve Pain

Doctors had believed they had beaten the disease but Bajandar fled a Dhaka clinic in May last year following a relapse.

Recently posted . 6 views

Women Don't Need To Change Their Names In Passport After Marriage Anym...

PM Modi has just announced a good news for the newly-married couples who were planning their summer breaks for overseas, but are stuck up in the process of updati...

Recently posted . 6 views

Low Bills, Low Water Use, No Waste: These ISRO Scientists’ Homes Are G...

Like many Indians, an ISRO scientist gave utmost importance to the interplay of natural light and air while designing his eco-friendly house.

Recently posted . 20 views

The story of the Gurugram startup that busted IT firm CEO for furnishi...

Gurugram-based startup AuthBridge offers services such as instant identity verification, employment background screening, customer screening, partner due diligence,...

Recently posted . 28 views

 
 
 

Prashnavali

Thought of the day

"Just as the sun gently moves the darkness of night out each morning, we too can move from darkness to light each day. Wake up to new life each day, freeing ourself from all things that do not serve us. Let them drift away with the night & fill that space with new hope each morning."
Anonymous