Odisha Police Uncover $1.5M Crypto Scam in India
Police in Bolangir, Odisha, discovered a cryptocurrency scam being run by a local gang. The group allegedly conducted fake crypto transactions and promoted non-existent digital tokens to attract investors.
Authorities arrested the main suspect on Saturday, along with evidence of fraudulent activities. According to reports, the accused advertised a new cryptocurrency in July 2022, claiming it was valued at $0.0012 initially but had climbed to $0.010 per token. They tempted people to invest in the fake coins with promises of free trips to Thailand and Dubai.
The gang also established a multi-level marketing company called Pegmatite Sustainable Solutions to hide illegal crypto dealings. Police estimate the group cheated investors out of over $1.5 million through the scam.
This incident highlights the rising threat of cryptocurrency fraud in India amidst the crypto boom. With natural retail investors falling prey, authorities have tightened digital asset and exchange regulations to limit illegal activities. The Financial Intelligence Unit recently sent notices to nine offshore crypto exchanges accused of violating anti-money laundering laws.
Tighter oversight of the nascent crypto sector aims to build investor trust and prevent scams. However, more awareness is important to identify caution before putting money into cryptocurrencies.
Also read: Odisha EOW Busts India’s Biggest Crypto-Ponzi Scam
