While globally, there is news mostly of Bitcoin theft or hack stories, India is rocked with Bitcoin scam stories \u2014 stories of fudge and fudgers. Since the arrest of Amit Bhardwaj, a series of Bitcoin fraud stories have been unfurled based on FIRs filed by cryptocurrency investors.\r\n\r\nMost of these frauds are related to MLM schemes. Lastest is the Coinx Trading. Hyderabad police team has arrested five fraudsters who have collected $1.43 Mn from over 1200 investors promising huge returns on their investments.\r\n\r\nAnother case currently unfolding is that of Gujarat Bitcoin Extortion Case which is said to be worth $3-12.7 Bn.\r\n\r\nLet\u2019s take a look at this week\u2019s crypto developments:\r\nCoinx Trading: Another Cryptocurrency-Based MLM Scheme Busted In Hyderabad\r\nConducting a raid at a Secunderabad-based real estate firm, GRM Estates Pvt Ltd, Hyderabad Police team has captured five fraudsters including the mastermind Gardesh Ramesh, founder of the fraud company Coinx Trading, selling cryptocurrency-based Multi-level marketing (MLM) schemes. The police have also seized four sale deed land documents, (purchased by accused persons with the invested amount of the customers), four ATMs, two cars nine mobiles, cash and other properties of total worth $260 K (INR 1.8 Cr).\r\n\r\nAs per the police report, \u201cThe main accused Gardas Ramesh hatched a plan to gain illegal, easy money and started an MLM business in the name of Coinx Trading (Cryptocurrency\/Bitcoin) luring the gullible public with a promise of making them rich within a short period with high returns. Gardesh encouraged them to invest money in Coinx Trading which claimed to be registered in the US and the UK.\u201d\r\nAround 1200 customers were so far enrolled as investors in the Coinx Trade business. The investors have already invested around $1.43 Mn (INR 10 Cr) in the MLM scheme.\r\nGujarat Cryptocurrency Scam: Divyesh Darji of Bitconnect Arrested\r\nAfter Amit Bhardwaj was arrested and booked as the mastermind in the $300 Mn Bitcoin fraud case, the Gujarat scam \u2014 in which 200 Bitcoins (worth a few crores) were reportedly extorted \u2014 was busted. However, the fraud is now being reported to be anywhere between $3 Bn and $12.7 Bn.\r\n\r\nThe main accused in the case \u2014 Divyesh Darji, the Asia head of UK-based crypto company Bitconnect \u2014 has now been arrested at the Delhi airport. Darji was returning from Dubai. The other accused \u2014 Satish Kumbhani, Dhaval Mavani, and Suresh Gorasiya \u2014 are yet to be arrested.\r\nDivyesh Darji has been accused of duping invstors of $12.7 Bn through the Bitconnect.in, the Indian division of the UK-based Bitconnect (.com), which was launched right after demonetisation.\r\nAccording to DGP Ashish Bhatia, CID-Crime, Gujarat, Bitconnect was launched in India in November-December 2016, just after demonetisation was announced. \u201cThey launched their own \u2018Bitconnect coins\u2019 soon after demonetisation. They promoted the company on social media and by holding gala functions in cities across the world. They lured investors with 60% monthly interest and incentives in the form of \u2018referral interest\u2019,\u201d added Bhatia.\r\nCrypto Startup PocketBits, Users Rush In To Help Kerala Flood Victims\r\nMumbai-based crypto startup PocketBits has come up with a novel way to help in the Kerala flood relief efforts. It has set up a page to assist crypto token holders from around the globe to contribute to the CM\u2019s Distress Relief Fund (CMDRF) and enable the purchase of relief goods for transfer to NGOs. The company has already received donations worth INR 1.55 Lakh.\r\n\r\nIn an email response to Inc42, PocketBits founder Sohail Merchant said, \u201cWe are trying to help the affected by raising funds via cryptocurrencies for mainly two reasons. One, to help Indian users who have cryptocurrency on exchanges and cannot withdraw INR to donate as most Indian exchanges don\u2019t offer functional INR withdrawals, so they can easily contribute towards the efforts. Second, to enable the global crypto community to contribute in the efforts to rehabilitate the Kerala flood victims without worrying about wire charges etc.\u201d\r\nAfter Launching Loop, Koinex To Other Blockchain Solutions\r\nBesides having launched P2P crypto transaction facilities, Koinex is also exploring other industry-specific blockchain-based solutions. Speaking to Inc42, co-founder Rahul Raj stated, \u201cWe recently launched Loop, and we\u2019re also exploring many other blockchain use cases for various industries and sectors. We are open to collaborating with the government or industry players\/category leaders to forge alliances and co-develop sophisticated solutions.\u201d\r\n\r\n\u201cSince we successfully built an exchange from scratch, we already have a strong understanding about the financial sector and the various blockchains which are integrated in it, but that doesn\u2019t limit us from exploring other sectors such as healthcare, education, governance, real estate, digital media, and so on,\u201d he added.\r\nSEC Rejects Nine Proposals for Bitcoin ETFs\r\nIn a setback to crypto enthusiasts, the US Securities and Exchange Commission (SEC) recently rejected applications for nine Bitcoin-based exchange-traded funds (ETF) from three separate companies. ETF provider Direxion had proposed to list and trade five Bitcoin ETFs, while GraniteShares and ProShare presented two each, all of which were rejected by the SEC.\r\nHowever, the SEC has further stated that it will review its decision of blocking nine Bitcoin-based exchange-traded funds from coming to market, according to letters the SEC posted on its website.\r\nIn other news, while Bank of America has filed another patent application for a system that manages cryptocurrency storage in an enterprise environment, is it right to worry about the energy that Bitcoin mining consumes, a The Conversation article raises?