Indian police detain investor who took 2,000 bitcoins from the Bitconnect crypto pyramid
The Criminal Investigation Department of India (CID) issued a statement in which it spoke about an angry businessman who took 2,000 bitcoins from the promoters of the fraudulent crypto project Bitconnect, writes CCN.
According to the report, the Indian wing of Bitconnect was located in Gujarat and was run by three people – Diyash Darji, Satish Kumbani and Dhawal Mawani, who worked with project promoters overseas and urged Indian investors to invest in their venture..
The trio aggressively advertised Bitconnect as a good investment and guaranteed a “very high return” on investment.
One of the investors in the project was Shailesh Bhatt, who put his trust in the company for offering “a daily profit of 1.1%.” However, when the company failed to pay his money, an angry Bhatt teamed up with eight others in December 2017 and took 2,000 bitcoins from Mawani. A month later, he was detained near the capital of Gujarat..
CID officers were able to interrogate Bhatt’s nephew, Nikunj, who was probably also a member of the extortionist gang. He had 12 bitcoins confiscated.
“The firm operated not only in India, but also in Indonesia, Vietnam, Hong Kong, Singapore and the United States. We have identified several accounts associated with these transactions and notified the respective banks, ”said a CID employee..
According to Nikunj, the company used special software that supposedly calculated the low and high points of the bitcoin rate, and stated that trading with this system brings an average of 1% profit per day or 365% per year..
The company reportedly had ways to stimulate investors. For example, if a person invested between $ 1,000 and $ 5,000, an additional 0.1% was added to his income. If the investor invested even more, then his percentage increased – up to 0.25% additional profit per day.
CID says it will exchange the returned bitcoins for Indian rupees and deposit it with the country’s central bank despite Indian resistance to bitcoin and other cryptocurrencies.
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