Author: Jagdish Kumar, India
Even though Reserve Bank of India (RBI) has banned trading of cryptocurrencies in the country from 5 July 2018, scam in the name of investment in cryptocurrency is not stopping.
Recently, in the state of Telangana, Hyderabad police have arrested five people from CoinX Trading for running illegal investment plan.
The company was operating a multi-level marketing scheme, which had promised good returns for their investment. The company was raising money for its real estate project.
The police had raided GRM Estates, a real estate firm based in Secunderabad, India from where they arrested five men along with the main mastermind Gardesh Ramesh.
The other four people arrested by the police are Chandupatla Srinivas, Sudagoni Sathaiah, Kunchala Hari Gopal, and Namalla Venkatesh.
During the raid, the police also seized cask, mobile phones, cars and other items worth $260,000.
The company which started operations in 2013, boasted of registering its company in it in the U.K and U.S for giving a global feel to the company.
According to police, the company raised around $1.43 million over one year from over 1,200 investors, which was utilized in property development.
CoinX Trading offered its investors a total of 12 investment plans. From the basis plan of $1000 to elite plan of $500,000 for investors with huge pockets.
One can invest in the company from 500 days to 134 days, with 1% interest paid daily on their investment. They were even offered 60% commission, if new clients were added.
Their scam came to light after the company started defaulting payments and complaint was filed from some investors.
An crypto expert said that though RBI has banned crypto trading, they have not created any awareness among citizens about such a scheme.
RBI needs to do more on their part, or else the number of crypto scam will keep on rising, the expert added.