While the Bitcoin mania surges higher, so is the frequency of fraud being perpetuated in the name of cryptocurrency. In a recent case, a gang of crooks which floated a fictitious cryptocurrency Kashhcoins, put up a website and duped several people in Delhi and other parts of the country before the crime branch arrested a key player. The accused, Narendra Dahiya, hails from Sonipat, Haryana. Eight other members of the gang have been identified and raids are being conducted to nab them.
The gang had named the currency Kashhcoins and put them up for sale on the website Kashhcoin.net. They devised a unique combination of cryptocurrency and multi-level marketing to make huge profits. They asked each unsuspecting buyer to add their families, relatives and friends in the chain to earn profits. For every new member added, they were promised incentives over and above their profit.
On the website, the company claimed to provide “all residents of earth” with sufficient number of coins to achieve independence from other money. It stated, “There is a finite number of KASHH Coins. The maximum amount of KASHH Coin is 2,515,020,000 and, unlike money issued by government, KASHH Coin can’t be affected by inflation and are impossible to counterfeit.”
The gang promised a return of 10% for five years to their buyers, apart from the “shooting rate” of the cryptocurrency, which they claimed would soon cross the rate of Bitcoin. Initially, each Kashhcoin was priced at $0.05(INR 3.5).
More About The Kashhcoins Fraud
In order to lure investors, the gang organised seminars in several cities and invited eminent personalities to impress people. As per DCP (crime) Bhisham Singh, videos of the seminars uploaded on YouTube and social media sites are being used to verify the antecedents of those who attended them. A Bhojpuri actor and a Bollywood actress are seen in two of the videos that the gang uploaded. More arrests are likely to follow in the coming days.