Bitcoin racket busted in city, accused held

New Delhi: The Delhi police Crime Branch has busted an inter-state gang involved in duping investors by selling fake digital currency (cryptocurrency) on Thursday.

The gang has duped several investors of about Rs 50 crore by promising them ten per cent interest every month on their investment amount and high return on their principal amount, said a police official.

The cops have arrested one Narender (32), a native of Sonipat in Haryana, from Delhi, who was the operational hand of the gang in Delhi.

The other gang members were operating the syndicate from Gujarat, Rajasthan, UP, and Mumbai.

The gang was collecting money from investors through Multi-Level Marketing (MLM) venture and promised them huge returns on their investments in ‘Kashhcoin’- cryptocurrency that was similar to Bitcoin.

They use to organise seminars and meetings at hotels in various cities to lure investors.

 The cops informed that Arun Kumar, a Delhi based businessman filed a police complaint in which he alleged that a gang who lured him for investing in a newly laun-ched Cryptocurrency, “Kashhcoin”, cheated him to the tune of Rs 14 lakh.

The coins were initially launched at Rs 3.50 per coin.

 Cops also found that as per the given guidelines of RBI virtual currencies  are not legalized in India, moreover, multi-level marketing was also involved in this mass cheating case.

The gang had formed a website and using social media platforms to approach investors.  

“We conducted raids in Maharashtra, Rajasthan, and UP. After much effort, Narendra was arrested from a location in Delhi. He has disclosed names of other gang members during interrogation,” said Alok Kumar, joint commissioner of police (crime).