Cyber Crime
Fake Websites, Fake Profits: How This Cryptocurrency Scam Duped Over 100 Investors of Rs 5 Crore
CID Jharkhand cracks a Rs 5 crore cryptocurrency scam, arresting key suspects behind fraudulent websites and AI-based trading. Over 100 investors duped. Investigation ongoing.
Jharkhand’s Criminal Investigation Department (CID) uncovered a major cryptocurrency investment fraud, leading to the arrest of the mastermind. The case, registered on November 9, 2023, involved a cunning group of fraudsters who targeted over 100 unsuspecting investors across the state with promises of high returns on cryptocurrency investments.
Deceptive Tactics: A Luring Website and Fake Profits
The fraudsters meticulously crafted a website, www.oropay.io, designed specifically to lure potential investors. This website functioned as a platform for cryptocurrency trading. Initially, the website used AI-based trading simulations to display inflated profits, creating a sense of legitimacy and trust. Investors were then allowed to withdraw these fake profits in the form of TRON cryptocurrency, a well-established digital currency. However, this initial phase was merely a ploy to gain the victims’ confidence.
The Trap Tightens: Worthless Tokens and a Disappearing Website
The fraudulent scheme took a sharp turn when the perpetrators replaced TRON with their own invented cryptocurrency, OPAY. Unlike TRON, OPAY held no real value and could not be redeemed by investors.
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This move essentially rendered their initial investments inaccessible and worthless. As if this wasn’t enough, the fraudsters completely shut down the oropay.io website, leaving victims with no way to access their supposedly invested funds.
Doubling Down on Deception: A New Website and Fake Tokens
Determined to exploit their victims further, the fraudsters created a new website, blockpay.pw. This website followed a similar pattern, urging investors to invest in various blockchain wallet addresses.
However, any profits accrued through this platform were also impossible to redeem. Additionally, the perpetrators introduced two new tokens, DGFI and OPAY, further enticing victims to invest.
Inevitably, the value of these tokens plummeted to zero, resulting in substantial financial losses for the unsuspecting investors. Estimates suggest the total fraud amount to be somewhere between Rs 4-5 crores.
Aggressive Marketing: Lavish Seminars and Foreign Trips
The fraudsters employed a multi-pronged approach to attract potential victims. They conducted lavish seminars in prestigious hotels, capitalizing on the allure of luxury and success. Additionally, they organized Zoom meetings and even offered investors extravagant trips to Dubai and Russia, creating an illusion of legitimacy and a successful organization.
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CID Steps In: Key Arrest and Ongoing Investigation
Following a meticulous investigation that involved tracking down the perpetrators, the CID has successfully apprehended a key member of the fraudulent operation. This individual, identified as Amit Jaiswal (36) from New Delhi, is believed to be one of the masterminds behind the development of the fraudulent websites and tokens. Jaiswal’s arrest follows the earlier apprehension of Shashi Shankar Kumar (36) from Bihar in the same case. The CID has vowed to continue their investigation to ensure all those involved are brought to justice.
Amit Jaiswal arrested by Jharkhand police.
Recovered Evidence
- Mobile phones and SIM cards used in the criminal activity
- Blockchain wallet addresses utilized by the perpetrators to funnel away investors’ funds
Public Advisory: Invest Wisely, Stay Safe
In light of this case, the CID Jharkhand urges all citizens to exercise extreme caution when venturing into cryptocurrency investments. Here are some crucial tips to remember:
- Always Verify Platform Legitimacy: Before investing any money, conduct thorough research to verify the legitimacy of the cryptocurrency platform. Look for credible reviews and ensure the platform operates with transparency.
- Seek Professional Guidance: Don’t be afraid to seek professional financial advice, especially if you’re a novice investor. A qualified financial advisor can help you navigate the complexities of the cryptocurrency market and avoid falling prey to such fraudulent schemes.
- Report Suspicious Activity: If you suspect you’ve encountered a cryptocurrency investment scam, report it immediately to the authorities. You can contact the National Cyber Crime Reporting Portal (https://cybercrime.gov.in/) or dial the national helpline number 1930.
By staying vigilant and informed, investors can protect themselves from falling victim to similar cryptocurrency scams in the future. The CID’s successful investigation in this case serves as a reminder of the importance of staying alert and reporting any suspicious activity to the authorities.