The Criminal Investigation Department (CID) of India arrests the four creators of the cryptocurrency KBC Coin, alleging that KBC is a Ponzi Scheme, as per a report from the local publishing The Times of India on July 4.
Launched 6 months ago, allegedly by Vijay Prajapati, Dhiraj Patel, Kamruddin Syed, and Ashiq Shaikh, KBC has since not moved in terms of price. As per the report, KBC coins were issued 10 paisas apiece, wherein investors were promised a 100-fold return of 10 rupees in a short time.
As per a CID member, one of the promoter Baljeetsingh Lashkariya involved in promoting the KBC via a pyramid scheme stating that the “First investor in the chain would get an incentive from the last circle of investors. This offer played a major role in bringing more investors to the company.”
Lashkariya and another promoter, Mohan Patel, have reportedly “gone underground.”
Indian legislators have been tightened their regulations regarding cryptocurrency, and recently it proposed a bill that would punish crypto enthusiasts in the country with up to 10 years in jail for violating the country’s anti-crypto laws. As per The Block, the enforcement policy is apparently part of the proposed bill “Banning Cryptocurrencies and Regulation of Official Digital Currency Bill 2019.”
Early drafts of this bill appeared at least as far back as April, subsequently banning crypto activities in India.
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