Accusations of a crypto ponzi scheme were investigated by the Criminal Investigation Department (CID) of India. CID arrested 4 Indian citizens, who are credited as the creators of the KBC Coin.
According to the Times of India, Ashiq Shaikh, Kamruddin Syed, Vijay Prajapati and Dhiraj Patel were all arrested in Surat. According to CID, its impossible to currently measure the damage because the number of victims affected by KBC Coin is still unknown.
This seems to be the 6th cryptocurrency scheme registered by the authorities in Surat for the last 2 years.
There also seem to be 2 other members of the group who are currently evading arrest. Baljeetsingh Lashkariya and Mohan Patel were acting as promoters of KBC Coin and they are still at large.
KBC Coin did serious damage in a very small amount of time
CID reveal that KBC Coin was launched a little over 6 months ago. During that time, investors were lured in with the promise of having their 10 paise converted into Rs10 in record time.
Despite being “operational” for 6 months, the plans for the scheme were prepared for at least 2 years in advance. Lashkariya was promoting the cryptocurrency and allegedly managed to lure thousands of “investors” for his company.
The KBC Coin’s value was kept at 10 paise at launch and investors were told that the value would rapidly increase. Lashkariya had even opened several branches in Mehsana and Ahmedabad. A large amount of resources was actually put towards the promotion of the scam.
Most investors were lured in with the promise of a “pyramid-like crypto structure”. The 1st few to invest would receive incentive from the next levels of investors and so on. Many people were lured in with the promises that they are going to be in the top level of the pyramid.
The office in Mumbai, had an entire team working on promoting KBC Coin. The scam had its very own website, social media pages and even a hotline for questions.
Over the last few years, CID has dealt with numerous other crypto schemes. Torus Coin, Regal Coin, Dekado Coin and even BS Coin (yeah, look it up) were all responsible for a lot of victims. Many of these victims have not come out and will most likely not do so.
You can also check out:
- Libra White Paper Revealed: All Cards Are Now on the Table
- Electricity Consumption of the Bitcoin Network Shows Interesting Facts
- Mainstream Use of Libra: Anti-Crypto Politicians and Their Stubbornness
- Cointelegraph Ban Enforced in Russia: No Explanationby Roskomnadzor - Oct 18, 2019
- 18 Millionth Bitcoin to be Mined Today: Implications - Oct 18, 2019
- Karma Automotive Now Accepting Crypto Payments for Luxury Vehicles - Oct 17, 2019
- Ripple Finastra Partnership Announced: Future of Finance - Oct 17, 2019
- Chinese Monopoly is a Real Possibility if Libra Fails to Launch - Oct 16, 2019
Know more than others on any Blockchain Party!
Join more than 5000 others to receive the breaking news and weekly summaries! No ICO spam, we promise.