Two men in Delhi, National Capital of India have been arrested by the Special Cell of Delhi police for running a fake multi-level marketing scheme of bitcoin investment in the national Capital. The duo would lure customers by offering them high returns. Around 5,000 different ID’s were recovered from them.
The two accused, Deepak Jangra (37) and Deepak Malhotra (56), both residents of Haryana’s Sonipat, created an online portal that was claiming the returns on the basis of BTC mining and trading, and also falsely claimed to be operated by a US-based company.
Once these two already successfully duped 5,000 people to invest in the company, Jangra stopped paying returns in bitcoins and instead offered his investors a new cryptocurrency called ‘BMP’ that he had created on his own.
The duo also established their office at Netaji Subhash Place in northwest Delhi. A senior police officer said,
“The accused would claim that the BMP coin had a high market value, and induced people to invest in it after their previous scheme did not work out,”
The police officials received a complaint alleging that multiple investors were duped by fake schemes started by the accused men. The complainant stated that the accused men had made false representations and assurances in order to induce the investors to invest their money in the business model promising high returns from bitcoin mining and trading on an international level.
DCP (Cyber Special Cell) Anyesh Roy said,
“This scheme came into vogue in 2016. Initially, investors were offered returns on their investments, which gave confidence to other investors who joined up. But the fact was that the accused were not involved in mining and trading of bitcoins, so the returns stopped,”
By introducing the BMP coin, Jhangra shifted the investors’ money to the new cryptocurrency.
“He tried to manipulate prices of the bitcoin but investors lost confidence in his model. After mounting pressure from investors to return the money, Deepak fled his house,”
The scheme could last for few months before the bubble busted and the investors started questioning for the promised returns. This aroused suspicion when there were no responses from these two investors. Police is still trying to see if there are more ID’s than 5000 which can be recovered from this two in order to offset the entire loss.
Source- The Indian Express
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