Fraud in the name of Cryptocurrency! 38 lakhs cheated from 17 people, 2 arrested

There is an allegation of duping 17 people of Rs 38 lakh by promising good returns for investment in cryptocurrency. Rajkot Crime Branch in Gujarat has arrested two persons from Surat, who were allegedly part of a cryptocurrency racket. According to the police, a mastermind from outside Dubai was running this alleged crypto racket, of which four people were on the police radar. Two of them have been arrested. The four accused started the scheme after launching a portal named ‘’ in September 2020. The accused tricked people into signing smart contracts and took their money.

The arrested suspects have been identified as Brijesh Gadiyali and Kiran Panchasara. Both are residents of Surat. Two other accused Dhaval Lahiri and Hitesh Gupta are absconding. Rajkot Police Commissioner Manoj Agarwal claims that both the absconding accused are likely to be abroad. The commissioner also confirmed that the racket may have originated from Surat, which soon spread to Rajkot.

As reported by NewsroomPost, the accused advised people to invest in the Tron cryptocurrency. Promised that the investors will pay 2 percent profit daily in the virtual wallet. Due to this promise, more than three times the investment was received within 150 days. After this, the accused asked the investors to add other people to this scheme to triple their investment. For this, it was also said to give 10 percent additional commission as a reward.

The 17 victims involved in the scheme invested Rs 52.20 lakh and received Rs 13.90 lakh through various channels such as cash, bank transfer etc. According to Rajkot Crime Branch Inspector VK Gadhvi, the accused had launched their own cryptocurrency named Megatron Megatron during a show held in Udaipur.

The police inspector said that the accused had promised investors that the value of Megatron and Tron would be equal. The next day the value of Megatron declined to Rs.00.001. This caused a loss of Rs 38 lakh.

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