Indian Police Arrest 4 Crypto Crime Suspects — 1 Missing

Wilfred Michael 

Wilfred Michael

News reporter

18 February 2019,
Indian Police Arrest 4 Crypto Crime Suspects — 1 Missing

Police authorities in India’s big city, Mumbai, have uncovered the plot of five alleged suspects who duped victims of roughly 1 billion rupees ($17 million) through a fake cryptocurrency they tagged Cashcoin.

According to Times of India, the authorities have arrested four of the suspects — Sanjay Sontakke, Rajnikant Kumavat, Alpesh Barodia, and Kirankumar Panchsara — for fraudulent activities while accounts belonging to them were frozen.

Also, authorities are still hot on the tracks of Ashok Goyal, who the report named as the fifth person and primary instigator of the cryptocurrency-related crime.

Nature of the Crime

  • The suspects created the CashCoin cryptocurrency and promised investors that they would get double the amount they put in after two months.

  • The suspects paid off the first few investors as a way to lure new ones before defaulting in the end.

  • Many people fell for the scheme including Umeshchand Jain who filed the case with the police. Jain claims he invested 10.2 million rupees (about $145,000) into CashCoin.

  • After receiving money from their victims, the suspects move the money to bank accounts in different parts of the country. The authorities froze these accounts during the investigation.

  • The suspects now face charges for cheating, breach of trust and criminal conspiracy.

Meanwhile, Ajay Dubey, the attorney representing the accused men stated in the report that his clients were wrongly arrested and are not responsible for the crime. The lawyer cites several sections of the Indian Penal code to point out that no form of cheating was involved since the alleged victims made payments in cheque.

In a similar development last week, reported that the Turkish Police arrested 24 suspects involved in a $2.3 million crime. The men did not use a cryptocurrency. Instead, they breached security at an unnamed crypto firm and stole different coins held by users on the exchange.


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