The creators of the KBC Coin cryptocurrency have been apprehended by the Criminal Investigation Department (CID) authorities (India).
Another crypto-scam in India
Vijay Prajapati, Dhiraj Patel, Kamruddin Syed and Ashiq Shaikh, the four suspected founders of the KBC Coin cryptocurrency were arrested by the CID.
According to the Indian authorities, the reason for the indictment is a Ponzi scheme that exploits the inexperience of investors.
The Gujarat IDC was able to arrest four people while two others, Baljeetsingh Lashkariya and Mohan Patel, the sponsors of the Ponzi scheme, fled.
The total amount of hijacked funds is estimated at approximately $ 180,000. However, the actual figure could be much larger according to sources close to the subject.
The scammers have dazzled a return of investment to 100 times the amount invested.
"The price of KBC Coin has never increased and in six months, the promoters have gone underground," said Ashish Bhatia, an IDC official.
Inadequate regulation
India has a strict cryptocurrency policy. Indians face up to 10 years in prison in case of interference with the anti-cryptocurrency law proposed by lawmakers.According to a report by The Block:
"This enforcement policy is apparently part of the proposed bill."This is not the first time that KBC Coin has been suspected of a Ponzi scheme. Indian Pritam Patil and her family are being investigated for fraud, claiming 12 victims for approximately $ 250,000 in KBC Coin.
An increasing number of investment products have served as bait for unsuspecting investors. It seems that dummy crypto-currencies will continue to rage in countries until India resolves to formulate its draft law on virtual currencies.
What do you think of the Indian Ponzi scheme KBC Coin? Let us know in the comments below.