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Indian cryptocurrency scam: Authorities arrest 11 individuals over alleged $5.4 million fraud


www.cryptopolitan.com 21 February 2022 12:01, UTC
Reading time: ~2 m

TR; DR Breakdown 

  • Eleven people arrested in India for alleged $5.4 million fraud 
  • The accused alleged lured investors with promises of high returns 

In what is being touted as India’s largest cryptocurrency scam to date, authorities have arrested 11 individuals over the weekend in connection with an alleged fraud that saw 2,000 people lose US$5.4 million (INR 400 million). 

The accused allegedly lured investors with promises of high returns through a Ponzi scheme, in which new investors’ funds are used to pay previous investors. This marks one of the first major crackdowns on fraudulent activities in India’s burgeoning cryptocurrency industry. 

Nishid Wasnik was the alleged leader of the conspiracy who fooled his company’s website to give the appearance of continuous growth in investments, luring victims before stealing money from their accounts between 2017 and 2021.

Indian government seizes $3 million in Bitcoin from fraudsters     

Cryptocurrencies, Bitcoin (BTC) in particular, are far more secure than typical financial systems; nevertheless, it does not imply that the environment is free of frauds and swindles. Over the last several years, numerous cryptocurrency projects, as well as ICOs and exchanges, have been exposed as frauds, and now one such scenario has emerged in Asia.

Bitconnect cryptocurrency fraud is the reason why a house valued at roughly $5 million (£3,400,000) was taken from one of its participants in Gujarat, India.

The home was being held by an entity called “Preston Echols,” according to local sources. According to those same sources, the property included roughly two hundred and eighty Bitcoins (280 BTC) worth approximately $2.9 million dollars as well as land with a value of around $2.6 million dollars.

Following the seizure, Rakesh Savani’s apprehensions increased. The ICO price was just 20 cents, so the return promise was at least 300,000% of the initial investment At the same time, he claimed that most of the coins were illegally obtained. Given the head of the project’s arrest last year in India, it comes as no surprise that Savani was raided.

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