Thursday, Mar 28, 2024 | Last Update : 03:35 PM IST

  Metros   Mumbai  06 Jun 2018  Cryptocurrency kingpin launched biz in lavish affair

Cryptocurrency kingpin launched biz in lavish affair

THE ASIAN AGE.
Published : Jun 6, 2018, 2:24 am IST
Updated : Jun 6, 2018, 2:24 am IST

Officials said that the function was attended by the royal family and featured as the cover story of Forbes magazine (middle-east).

Thane police commissioner Parambir Singh displays all seized material in a press conference held on Tuesday. 	(Photo: Deepak Kurkunde)
 Thane police commissioner Parambir Singh displays all seized material in a press conference held on Tuesday. (Photo: Deepak Kurkunde)

Mumbai: A day after raids on illegal cryptocurrency operator, Amit Lakhan Pal, in Thane, the crime branch has found that the kingpin launched his crypto-currency business, Money Trade Coins (MTC), in a lavish function at Dubai in September 2017.

Officials said that the function was attended by the royal family and featured as the cover story of Forbes magazine (middle-east).

Pal is now said to be holed up in Dubai after allegedly duping 25,000 people of more than `500 crore. The police has arrested Taha Kazi (26), a Mumbra-based tech expert, who created the blockchain technology software that was used by Pal. At least five others, including Pal, are on the run. Sachin Shelar, the company's finance head, too, is on the run. Further, an assistant inspector of Thane police is suspected of aiding and abetting Pal, and is said to be in Dubai with Pal.

According to the police, Pal rolled out an “initial coin offer” with the option of redeemable crypto-currencies. The ICO was for USD 3 and he promised that the money would increase to USD 2,500. Pal increased the rates to USD 6,000 at one point, officials said. However, he kept the selling rights with himself so that nobody could make profits by selling their MTCs.

Param Bir Singh, Thane police commissioner, said, “He duped at least 25,000 persons, including a business group, to the tune of `50 core and two other individuals of `35 crore, each. He used fake fixed deposit certificates worth `2,500 crore of HSBC and a standby credit letter to gain confidence among investors.”

The police said that Pal floated 13 companies, including housing and auto, and also planned to float a MTC debit card for his investors. The card could be used for buying online. The company mined 105 million MTCs and another 20 million were in the pipeline, Thane police said.

The police has seized 53 laptops, MTCs, forged documents and other items from the offices at Ghodbunder Road and in Vikhroli.

Tags: cryptocurrency, money trade coins