Crypto Scam Continues, 31 Duped In A Cloud Mining Scam

The unearthing of new crypto-related frauds refuses to stop in the country. In the latest such case, it has emerged that 31 people from Maharashtra’s Solapur were allegedly duped of INR 45 Lakh.

The victims allegedly invested their money via a cryptocurrency cloud mining app, which lured them with promises of high returns.

Cloud mining allows customers to rent cloud computing to mine cryptocurrencies such as Bitcoin. This allows users to forego buying and maintaining expensive crypto mining equipment.

“The investors were asked to download the CCH Cloud Miner App and the crypto trading app. They were asked to convert their Indian currency into dollars using the crypto trading app and were made to invest in the CCH Cloud Miner App,” news agency PTI quoted a local police official as saying.

The law enforcement authorities have now registered a case against three people who persuaded the victims to download the app and invest their money in the cloud mining app.

Further probe into the matter is currently underway. 

A police official said that while some of the investors received returns initially, the app later went offline. He added that the office of the trio has been shut and the accused continue to be on the run. 

Crypto Scams On The Rise

This comes amidst a big spurt in crypto-related scams across the country. Last month, Inc42 spoke to the victims of the INR 90,000 Cr GainBitcoin scam, who called for an ED probe into the matter under the supervision of the Supreme Court (SC). 

In September, the Ambala Police also arrested four people in connection with a crypto scam that defrauded gullible investors to the tune of crores by luring them promises of high returns on cryptocurrency investments.

In the same month, an employee of an ecommerce portal was arrested from Delhi for allegedly cheating crypto investors by showing fake profits on a fake online website. The Economic Offences Wing (EOW) of the Tamil Nadu Police conducted multiple raids last month and arrested two people in connection with a crypto scam, which offered high returns to users in lieu of their investments.

Besides, there have been major crypto scams such as Bitconnect, Morris Coin and Dekado which are being heard in various courts. 

An April Inc42 report estimates that Indians have lost more than INR 72,000 Cr in 12 major cryptocurrency scams

The spurt in such crimes comes despite multiple advisories issued by the Reserve Bank of India (RBI) urging users to conduct due diligence before investing in cryptocurrencies. The tightening regulatory screws from the government have further highlighted the large number of cryptocurrency frauds.

Despite the warnings and ensuing crackdown on fraudsters, the cases continue to pile up. The prosecution of such cases also remain scant, with the law enforcement officials not equipped with the necessary technical know-how in many such cases to take them to conclusion.