Indian authorities have arrested a citizen for operating a cryptocurrency Ponzi scheme that defrauded over 50 people of more than $190,000.
According to a local report, police arrested Kunjathbail Mujib Sayyad, the alleged mastermind behind “Max Crypto Trading,” in Hyderabad following a complaint by Shaik Ahmed from Farooqnagar village in Ranga Reddy district.
Sayyad and his associates reportedly collected substantial funds from local residents, promising triple returns within 150 days and offering commissions for recruiting new investors. Initially, the scheme paid returns to build trust. However, after collecting over 16,600,000 Indian rupees (approximately $199,156.51) from 52 victims, they shut down their website and Android application.
Deputy Commissioner of Police K Prasad reportedly confirmed Sayyad’s arrest by the Cyberabad Economic Offences Wing. The police have also reportedly filed charges under multiple sections of the Indian Penal Code and TSPDFEA-1999.
In a separate case earlier this month, India’s Enforcement Directorate reportedly seized $180 million in assets linked to another alleged Ponzi scheme. The Highrich Group, led by K.D. Prathapan and Sreena Prathapan allegedly collected around ₹1,500 crore (approximately $179,954.25) from investors with promises of high returns and a 15% annual interest rate.
The ED has accused the Highrich Group’s promoters of conducting illegal cryptocurrency transactions across multiple exchanges and promoting their own cryptocurrency, HR Crypto Coin.
These incidents highlight the current hype surrounding cryptocurrencies in India. Notably, the Indian government has been active in the sector, launching the ‘e-rupee’ in December 2022 to provide a digital alternative to physical cash and popular cryptocurrencies. A year later, the Central Bank Digital Currency (CBDC) had reached a milestone of being used in 1 million daily retail transactions. However, a recent report indicates the daily transaction numbers have now fallen to about 100,000.
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