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Indian Police unmasks BitConnect Crypto Scam

Amandeep Sonewane | Jun. 4, 2019
Indian Police unmasks BitConnect Crypto Scam

4 June 2019 | AtoZ MarketsIndian police have uncovered another cryptocurrency scam and Divyesh Darji who was a Bitconnect promoter has been accused of drawing off millions of Indian Rupees and manipulated people to get huge returns on their investment in Regal coin. As per the CID report, the estimated amount of scam reaches tens of millions in Indian Rupees.

CID India unmasks Bitconnect Crypto Scam 

Darji is a resident of Surat, Gujarat (West part of India) is accused in Bitcoin scams and later he was also accused in another 144.26 million US dollars scam of Dekado coin. As per sources, this is not the first time his name has been highlighted.

Criminal Investigation Department (CID) officials said that Darji had offered a return of nearly 5000% in September 2017. He asked the investors to invest in Regal coin with an investment of $2 and get $100 per Regal coin in return. He also promised investors that the Regal coin would give more returns than Bitcoin in the future.

CID officials said: “Darji had promised that the investor would get the principal amount in 99 days. He had also promised to give interest on the principal amount as per robotic trading profit along with 1% to 1.6% bonus as a referral bonus at every 11 days.”

This scammer came under the investigation after a person named Vishal Savalia approached CID claiming that he had lost approx. $27800 in Regal coin scam. The CID officials further stated that: “Savalia had allegedly given the money to Darji’s daughter, Dimki through another accused and Darji’s aide, Ramdayal Purohit and Dimki herself had downloaded Regal Coin app in Savalia’s cellphone and get him registered on its website.”
Also, after further inquiry, two more persons had also invested in Regal coin.

The value of Regal coin also reached till $100 once but later the company folded up with all the money.
As per India Police, only Purohit is presently under arrest, while Darji was released on bail a month ago. At the end of August 2018, Indian police arrested Darji for promoting BitConnect and scamming investors. Darji also confirmed that he had been the India head of BitConnect.

Indian Government on Cryptocurrency Ban

The cryptocurrency community in India has been increasingly pushed since July 2018, when the central bank banned banks from doing any business relationship with cryptocurrencies. Since then, the business has been severely affected and many crypto exchanges such as Zebpay shifted out of India.

The final hearing in the case by the Supreme court of India began in September last year, but due to numerous delays, no conclusion is yet in sight. The hearing will continue in July.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.