Himachal Pradesh: Thousands lose over Rs 200 crore in series of crypto rug-pulls

Police are yet to nab the cryptocurrency fraud kingpin who may have swindled thousands of people across Himachal Pradesh of more than Rs 200 crore since 2018 the year the crypto fever reached its peakThe gang lured people by promising high returns in a short span of time in crypto investments and created a network of investorsThe initial investors then were baited to reel in other people in a ponzistyle schemeThe matter was raised in the Vidhan Sabha by Independent MLA Hoshyar Singh who pegged the amount of money swindled from people in Kangra and Hamirpur alone to be upwards of Rs 200 croreIn the wake of Singhs assembly speech a special investigation team was formed to probe into the matterThe exact amount defrauded is yet to be ascertained Deputy Inspector General of Police Northern Range Abhishek Dhullar who is heading the SIT told PTI on Monday The frauds used a combination of misinformation deception and threats to maintain control over their scheme and continued to extract money from unsuspecting investors by manipulating the prices of their coins he saidThe first coin they launched was Korvio Coin or KRO coinsThey charged the buyers an initial activation fee and promised them substantial returns In their fiveyearrun the frauds used three to four cryptocurrenciesCryptocurrency is a digital currency designed to work as a medium of exchange through a blockchainbased computer network that is not dependent on any central authority such as the government or bank to uphold or maintain itOnce their accounts were activated the investors were encouraged to rope in more members into the scheme police saidThe criminals used a Ponzi scheme pattern a type of investment scam in which returns are paid to earlier investors from the capital contributed by new investors rather than from any legitimate profitsInvestors were encouraged to keep recruiting new members a practice which created a cycle where money from new investments was used to pay returns to earlier investors These initial investors got huge returns and became brand ambassadors of the schemeThe scammers built fake websites to list their coins and manipulated their pricesThey later launched a new coin called DGT Coin After enough people had purchased these coins at a higher rate its price was deliberately brought down causing a massive rugpullThe accused introduced new coins and investment plans under different company names such as Hypenext and Aglobal Each time a new coin was introduced it was marketed as a yet another investment opportunity police saidAccording to police they have received 50 complaints about such frauds this year aloneDuring their investigation police found that the modus operandi across these frauds was similar and names involved common SP Cyber Crime Rohit Malpani saidSince then five people have been arrested and chargesheeted in connection with these frauds and eight FIRs filed police saidWe are close to nabbing the kingpins of cryptocurrency scams in Himachal Pradesh and have mapped their assets and are conducting financial investigation Director General of Police Sanjay Kundu told PTIMy advice to people is not to fall prey to the cryptocurrency fraudsters he saidThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever