Even though cryptocurrency trading and ICOs are banned in India, the number of scams from the country do not seem to come at a halt.
A year-old cryptocurrency case has come to a standstill. The investors have refused to testify against the accused. Another issue that this case is facing is the lack of witnesses to the fraud.
Subhashchand Jewria, a resident of Goregaon, Mumbai was accused of duping people into investing in a cryptocurrency scheme last year. A year has passed since the incident yet, none of the victims have come forward to testify against the alleged person. The Indian Express reported that the Economic Offenses Wing (EOW) of Mumbai Police has officially called this case a deadlock.
In the first quarter of 2017, Jewria had set up a company called ATC Coin Ltd., registering in the United Kingdom. He had also set up multiple websites for attracting investors. He had asked the users to invest money between Rs. 5,000 and Rs. 20,000 in his venture. He promised the investors that his cryptocurrency tokens, ATC coins could be used to shop online after the initial 18 months, lock-in period.
Everything seemed to go as planned. After the company raised Rs. 84 crore, Jewria transferred the funds received by the investors to his personal accounts. The EOW said that they had received complaints about the same from various sources. Further probing into the matter showed that the company was fake and the accused was operating under cryptocurrency.
The EOW further said that the company had no existence beyond the documents. Following this information, both Jewria and his brother Chirag were arrested. About 28 accounts held by the brothers were frozen.
The authorities tried to approach the victims of the fraud but surprisingly, none of them was willing to testify against Jewria. An EOW officer talked about this denial of testimony:
“Since the case feels with cryptocurrency and in the absence of proper law and regulation, investors are scared that if they come forward, they might face a lot of scrutinies. While we managed to trace a few of investors, they did not lodge any complaint. The case has been stuck since then.”
The officer also said that even though the convict’s accounts were frozen, they were unable to pay back the investors due to the lack of evidence.
Ever since Bitcoin was introduced to the world in 2008, there has been an explosion of fraudulent cryptocurrencies in the market. These companies ask the users to invest their wealth with a promise to provide handsome returns.
Law enforcement agencies and government regulatory bodies across the globe are trying their best to raise awareness among consumers, users and investors alike. Countries like the U.S and China are coming down hard on fraudulent cryptocurrencies.
Back in July 2018, Joe E. Montroll, Owner, WeExchange, and BiFunder was sentenced to 20 years of prison on charges of lying to law enforcement agencies. Apparently, he embezzled Bitcoins deposited by customers to fund his extravagant lifestyle.
News Source: https://coindelite.com/news/india-sees-another-cryptocurrency-fraud/