Co-founder of company that installed bitcoin ATM arrested

A week ago, amid much fanfare, crypto-currency exchange Unocoin launched a kiosk where people could buy and sell bitcoins, in a mall in Bengaluru.

On Tuesday, the Central Crime Branch police arrested the co-founder of the company, Harish B.V., 37, for allegedly facilitating illegal currency transactions for his clients. He was produced before a magistrate on Tuesday who remanded him to police custody.

In India, crypto-currencies are not recognised as legal tender. Last year, the finance ministry cautioned against investing in bitcoins and other virtual currency. “There is a real and heightened risk of investment bubble of the type seen in Ponzi schemes,” it had said in a notification.

Harish hails from Tumakaru and is the Chief Financial and Compliance Officer of Unocoin, which has an office at Rajajinagar, said the police.

The police have recovered two laptops, mobile phones, credit and debit cards, passport and ₹1.7 lakh from him.

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