Delhi Police, Binance Join Hands To Bust Renewable Energy Scam

Crypto exchange Binance and Delhi Police have joined forces to dismantle a complex scam orchestrated by a fraudulent entity “M/s Goldcoat Solar”, a scheme which falsely claimed involvement in India’s renewable energy expansion.

The crackdown led to multiple arrests and the seizure of over 100,000 USDT in cryptocurrency assets.

The scammers falsely claimed to have obtained rights from the Government of India’s Ministry of Power to contribute to the country’s plan to expand solar power capacity to 450 gigawatts (GW) by 2030. Using this as a front, they convinced many individuals to invest in the scheme, promising significant returns by falsely aligning it with India’s renewable energy efforts, Binance said in a statement.

The scam gained traction on social media, where the fraudsters marketed “M/s Goldcoat Solar” as a credible investment opportunity. They impersonated high-ranking government officials and even used the names of prominent dignitaries to falsely endorse the scheme. Further, victims were presented with falsified earnings reports, supposedly from previous investors, to validate the scheme and establish trust.

The investigation revealed that the syndicate used multiple SIM cards activated under the identities of innocent individuals. These forged SIM cards were distributed in bulk, including some sent overseas, to facilitate scams. The operation relied heavily on these fraudulently obtained SIM cards to conceal the true identities of the perpetrators.

The syndicate funnelled victims’ deposits through various bank accounts, with some funds converted into cryptocurrency, complicating the investigation. The Delhi Police sought Binance’s assistance during a sharing session in India. Through virtual meetings, Binance provided analytical support, helping investigators follow the money trail.

Jarek Jakubcek, head of Law Enforcement Training at Binance, said, “Binance has been conducting sharing sessions with global law enforcement agencies, and this case highlights the positive outcomes of these collaborations. By connecting with law enforcement agencies, we can provide timely and crucial support in financial investigations and we will continue to do so to help combat financial crimes.”

Binance is a cryptocurrency exchange platform known for its large trading volume and user base, offering a wide variety of digital assets and services. It provides a diverse range of products, including trading, finance, education, research, payments, and Web3 features. 

The development comes months after Binance announced its re-entry into India by registering as a reporting entity with the Financial Intelligence Unit (FIU-IND) under the finance ministry in August.

For those unfamiliar, the FIU monitors trade in virtual digital assets (VDA) and ensures compliance with the Prevention of Money Laundering Act (PMLA) and the VDA taxation framework. All crypto exchanges operating in India are required by law to register as reporting entities to offer trading services.

Binance’s return comes eight months after the finance ministry issued notices to nine overseas crypto platforms, including Binance, for failing to register as reporting entities and comply with anti-money laundering regulations.