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4 suspects arrested by Indian Police in $14 Million Crypto Scam

Image Credit: Vecteezy

The Indian police arrested four more suspects involved in crypto scam which managed to steal more than 1 billion rupees, in crypto. The news came through leading national daily Times of India. 

Per the report, the group launched a cryptocurrency named ‘’Cashcoin’’. The suspects duped the investors by saying that, they will double their investments. 

Suspects Ashok Goyal Jaipuria, Asif Malpani, Baljit Singh Saini and Pradeep Arora from Delhi, have been arrested from Delhi. Also, Goyal’s bank accounts have been frozen. Per TOI report, an unnamed Bollywood Actor will also be subject to investigation. 

Police inspector Sunil Jadhav explained the scheme:

“The accused held meetings in Mumbai, Surat, and other parts of Gujarat, and lured people into investing their hard-earned money by promising to double it in two months. Initially, the gang repaid a few investors to lure more people in and then defaulted. Their intention was to cheat.”

Indian police first threw light on the scam and nabbed four suspects in February. However, Goyal, the mastermind is the latest catch. The suspects were arrested after an individual filed a complaint in Surat, a city in state of Gujarat.The individual was cheated of nearly $150,000

In January, Indian police nabbed an associate of a separate group. The accused was involved in carrying out a crypto scam involving a staggering 5 billion rupees.

Rising Menace of Crypto Scams

Crypto analytics company Chainalysis released a report on January 23, stating that value of Ether stolen via scams reached $36 million 2018

Per the Chainalysis report, scams that occurred in 2018  were purportedly more creative, bigger and sophisticated. The report also mentions that Ethereum has been a favorite crypto for scams. 

Also the nature of 2018’s scam activity was vastly different when compared to previous years. Furthemore,  phishing attacks in particularbecame less effective when compared to previous years. 

The value of stolen funds more than doubled in 2018, compared to the $17 million in ETH obtained through scams in 2017.

The report revealed that over 2,000 Ethereum scam addresses got funds from almost 40,000 unique users. Furthemore, 75 percent of this scam activity took place in  2018 alone.

The most common types scams involving ETH, were found to be initial coin offering (ICO) “exit scams,” Ponzi schemes and phishing attacks.The latter  counting for 88 percent of scam profits in 2017. Exit scams involving ETH are reportedly less common. They make up 3.8 percent of 2017’s scam revenue.