Bitcoin Craze: How Fraudsters Are Fooling Investors With Fake Cryptocurrency

Over the past few months, investigating agencies have been flooded with complaints of alleged Bitcoin exchanges that are nothing but multi-level marketing schemes. Delhi Police have received several complaints and have started investigating some of these suspicious companies, apart from keeping a close watch on the others.

Taking advantage of the growing fascination with Bitcoin, numerous ponzi schemes have cropped up in the name of cryptocurrency, targeting thousands of unsuspecting investors.

Recently, the Delhi Police arrested 32-year-old Narendra, who was operating one of these dubious 'Indian cryptocurrency' companies, Kashh Coin. The action came after a west Delhi resident told police that he was convinced to invest in Kashh Coin and ended up paying Rs 15 lakh some six months ago. While he was promised a 1.8 times return every month, he never received a single penny in these six months. His wallet was created after two months and he was given the coins at a rate of Rs 4.5 per coin.

“They asked me to wait till their money exchanger comes. They also mentioned that some of their companies were awaiting clearance from the Govt of India and once these are cleared, I would start getting the money. They kept fooling me for six months,” said the complainant.

When the complainant later got to know about the number of people who had fallen prey to such companies, he approached the police. The Delhi Police lodged an FIR and has kept the identity of the complainant a secret fearing his safety.

source :http://www.news18.com/amp/news/india/bitcoin-craze-how-fraudsters-are-fooling-investors-with-fake-cryptocurrency-1635143.html