Indian Police Uncover Cryptocurrency Scam Involving BitConnect Promoter


Indian police have reportedly found an alleged multi-million greenback cryptocurrency rip-off, involving a BitConnect promoter, native media outlet the Times of India reported on June 3.

The Criminal Investigation Department (CID) in Gujarat, India, has accused Divyesh Darji — a promoter of now-defunct cryptocurrency funding program BitConnect that ceased its operations in January of final 12 months — of luring folks to speculate into “Regal Coin,” promising unrealistic returns of as excessive as 5,000% on funding. A CID official mentioned that the estimated quantity of the rip-off reaches into the tens of thousands and thousands of rupees.

Per the CID, Darji started providing the funding scheme again in 2017, asking potential buyers to purchase the coin with an funding of $2 to get $100 on every Regal Coin. A CID official mentioned that “Darji had promised that the investor would get the principal quantity in 99 days. He had additionally promised to provide curiosity on principal quantity as per robotic buying and selling revenue together with 1% to 1.6% bonus as referral bonus at each 11 days.”

The rip-off was found after a Surat resident, Vishal Savalia approached the CID saying that he had misplaced round $26,783 within the Regal Coin rip-off. A CID official additional defined that “Savalia had allegedly given the cash to Darji’s daughter, Dimki by means of one other accused and Darji’s aide, Ramdayal Purohit and Dimki herself had downloaded Regal Coin app in Savalia’s cellphone and get him registered on its web site.”

According to the police, solely Purohit is presently beneath arrest, whereas Darji was launched on bail a month in the past and is on the lam. This is reportedly the third case involving Darji.

At the tip of August 2018, Indian police arrested Darji for allegedly selling BitConnect and scamming buyers. Darji reportedly mentioned that he had been the India head of BitConnect. The CID claims that workers on the BitCoinnect workplace in Surat admitted that promoters had amassed “crores of rupees from hundreds of buyers.”

In February of this 12 months, India’s Union Home Minister Rajnath Singh inaugurated the cyber forensic lab and Cyber Protection Awareness and Detection Centre, with a particular unit centered on cryptocurrency.

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