Thane Police busts Rs 500-crore cryptocurrency racket; one held

A case has been registered against the accused under various IPC sections for cheating, forgery, criminal conspiracy, criminal breach of trust.

Published: 05th June 2018 04:08 PM  |   Last Updated: 05th June 2018 04:22 PM   |  A+A-

Bitcoins are seen in this illustration picture. (Photo | Reuters)

Representational image. (Photo | Reuters)


THANE: The Thane Police has busted an online cryptocurrency racket, which had allegedly collected an estimated Rs 500 crore from people with promise of good returns, and has arrested one person, an official said today.

Some people had floated a company about a year back and launched their own cyrptocurrency called the 'Money Trade Coin (MTC)', through which they promised high returns and lured people to invest about Rs 500 crore into its schemes, the police official said.

However, the company allegedly failed to pay the promised sum to the investors.

Based on a complaint by a New Delhi-based businessman, the police raided the company's premises on the Ghodbunder Road in Thane yesterday and subsequently nabbed a person, identified as Taha Kazi, from Mumbra town.

The man, who was allegedly providing technical support to the company, was later arrested, the official said.

The police is trying to ascertain the exact modus operandi of the company's owners and how they used to run the racket.

A search is on for five others for their alleged involved in the racket, the police said.

A case has been registered against the accused under various IPC sections for cheating, forgery, criminal conspiracy, criminal breach of trust and relevant provisions of the Maharashtra Protection of Interest of Depositors Act, the Chit Funds Act and the Information Technology Act.

Across the world, there have been heightened concerns over cryptrocurrencies, also known as 'virtual currencies', such as Bitcoins as they are not regulated by any governments/central banks, leading to a fear of possible money laundering too.

The RBI had earlier come out with warnings to discourage the public from investing in virtual currencies.

The RBI has also asked banks not to extend banking facilities for sale or purchase of such currencies.


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