Cryptocurrency racket busted, one held

Surat: CID crime Surat zone police busted a cryptocurrency racket and arrested Hardik Zadafiya, handler of website for digital currency, here on Sunday. Four other accused involved in the racket are on the run. The accused lured people to invest Rs1.64 crore in cryptocurrency. Police suspect that the racket could be worth several more crores.
An offence of cheating was registered by CID crime sleuths on Friday against accused Rakesh Mavani, Nikunj Savaliya, Kalpesh Lakhani, Ashok Khmabhati and Zadafiya. The accused were booked for cheating and criminal breach of trust under various sections of Indian Penal Code.
They were also booked under The Gujarat Protection of Interest of Depositors (In Financial Establishments) Act 2003 and The Prize Chits and Money Circulation Schemes (Banning) Act.

Police investigation revealed that the accused launched Bitstrades cryptocurrency after registering their company in the United Kingdom in January 2017.

They opened their offices in Mota Varachha and Puna areas of the city and offered high returns and commission to investors. The accused also floated multiple websites and online trading platform.

The accused took 190 investors on tours to Bangkok and Singapore to earn their trust. “Majority of investors who lost money in the racket are yet to come forward. We hope that following the registration of the complaint, they will provide details of cheating about the accused to CID crime,” said a police officer of CID Crime.

Original Source