Police uncover Rs 100 crore 'crypto-currency' fraud in Kerala's Kannur; four persons arrested
KANNUR: The Kerala police on Monday arrested four persons from Kannur in connection with an investment fraud estimated at around Rs 100 crores, under the cover of cryptocurrency.
Police said crores of rupees have been collected from thousands of investors online by a Bengaluru-based company Long Reach Technologies.
PP Sadanandan, ACP, Kannur said the fraudsters had given advertisements of various schemes online to attract the investors and had also accepted payments online.
The persons arrested are PM Muhammad Riyas (31) of Alampadi, Kasaragod, C Shefeeq (30) of Manjeri, Malappuram, Wasim Munvar Ali (35) of Pavangad, Kozhikode and Muhammad Shafeeq (28) of Vandoor, Malappuram.
Police said the gang succeeded to convince the investors that they would get 2 to 5% interest daily. It was only when some of the investors felt that they were being cheated as they got neither the interest nor the money they had invested.
The investigation started four months ago as Kannur police received a complaint from Muhammad Dishad, one of the investors, regarding the fraud, said the ACP. The police have found that around Rs 40 crore have been deposited into the bank account of Muhammad Riyas, another Rs 32 crore in the bank account of Sheeq and Rs 7 crore each into the bank accounts of Wasim Munavar Ali and Muhammad Shafeeq. Police have taken steps to freeze the bank accounts of all these people. “As of now, only four persons have been arrested. The investigation is going on and if there are more people involved in this fraud, the police would nab them all,” said Sadanandan.
A person named Noushad of Pookkottumpadam in Malappuram was arrested by the police in connection with another cryptocurrency fraud sometime back.