The RBI continues to take a toll on the cryptocurrency investors in India as the police is now reportedly facing a challenge of how to liquidate cryptocurrencies they seized since the Reserve Bank of India (RBI), de-authorized all the banks from providing services to crypto exchanges. The RBI ban is now in effect and many crypto exchanges have already reached out their users to tell that they will no longer allow withdrawals from cryptocurrencies into rupees.
In the 2000 crore Bitcoin scam, the accused, Amit Bhardwaj had set up the online multi-level marketing company through which he allegedly lured investors by promising them handsome returns. He would allegedly promise 10 percent returns for investing one bitcoin but did not keep his word.
Around 8,000 investors are said to have lost around Rs 2,000 crore to the scam, purportedly the largest in India involving cryptocurrencies, allegedly run as a multi-level marketing scheme by Amit Bhardwaj, the founder of bitcoin-based investment website GainBitcoin.
Amit Bhardwaj was arrested by the Pune police at the Delhi airport after returning from Thailand. “Two cases were registered against him in Nigde and one in Dattawadi in Pune,” the Hindu clarified.
The news outlet further noted that “At conservative estimates, the cryptocurrency scam is worth Rs 35,000 crore [~5.1 billion].” The special investigation team (SIT) of the Pune police’s cybercrime cell subsequently “filed an application in the sessions court, seeking permission to sell the cryptocurrencies seized during investigation,” the publication conveyed.
Before the special sessions at the court, the police filed application to be addressed by the judge DG Murumkar, the police explained the difficulties of liquidating cryptocurrencies in India currently.
The police’s document filed with the court reads:
“The Reserve Bank of India has prohibited all the banks from providing services which include maintaining accounts, registering, settling, clearing, opening accounts of exchanges dealing with them and transfer or receipt of money in accounts relating to purchase or sale of virtual currencies.”
The news outlet further detailed, “the cops also brought to the notice of the court that Zeb IT Services Pvt Ltd [Zebpay] and other cryptocurrency exchanges in India had issued notices to their account holders that they will be unable to liquidate cryptocurrencies held by them and withdraw balance in rupees since the banks will stop providing settlement services from July 6.”
Read More: Zebpay Warns Its Users that Rupee Withdrawals Could Become Impossible
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