As the hype surrounding the cryptocurrency market rises, so does the number of cryptocurrency-related scams, with multiple cases being reported daily from various cities around the world.
Thankfully the authorities are working in monitoring to track down the scam artists with the latest good news coming from India where the police captured the first organized crypto racket based in Nagpur city.
According to the Times of India report, The gang embezzled over Rs 40 crores or $5.3M through a company ‘Ether Trade Asia.’
In Brief:
- The crypto racket swindled over 1500-2000 Ethers, and monetized most of it for their luxurious lifestyle.
- The city police also seized gold, high-end automobiles, a firearm and seven live cartridges in the raid.
A raid was conducted in Lonavala in collaboration with Pune rural police, and four people were arrested from the luxurious duplex in Lonavala: Nishid Wasnik, his wife Pragati, and their aides Gajanan Mungune and Sandesh Lanjewar.
Nishid Wasnik, the main accused and mastermind who operated this crypto racket, had help from his niece, an MBA graduate who assisted Wasnik in carrying out this massive crypto scam. She is currently on the run along with some others involved in the racket.
Amitesh Kumar, the chief of the city police, stated that the swindled amount in total could be even higher, as revealed by the ongoing investigation.
Police seized gold, high-end automobiles, and other equipment, including a firearm and seven live cartridges.
Police have now discovered the identities of approximately 172 people who were victims of this racket.
But even so, the racket’s website and online transactions resulted in a lot of extra questionable transactions in digital currencies, which are now worth around $5 million.
The CP noted, “The racketeers misappropriated around 1,500-2,000 Ethers each valued at around Rs 2.25 lakh. They also duped investors in cash transactions indicating that the fraud could be worth several crores more.”
The gang allegedly used to throw luxury events in Pachmari to lure potential targets. These individuals were instructed to purchase ETH and were then directed to Ether Trade Asia, the criminal operation’s website.
The crew showed a hypothetical benefit to each investor on the official site but siphoned off their Ethers to profit Wasnik and his associates.
Wasnisk and his gang appeared to have transferred or monetized a large number of Ethers to support their lavish lifestyle.
Cyber professionals tracked down the group by observing the members’ and their families’ online activities. A total of 11 gang members are under custody right now.
According to CP Amitesh Kumar, the cryptocurrency gang may face the harsh MCOC. “Our team will soon leave for Pune to gather more evidence and nab the gangster who was helping Wasnik,” he added.
Lately, multiple crypto scam artists are being tracked down by the authorities giving a slight sigh of relief to the community. The whole crypto space went into a frenzy when the U.S authority arrested Lichtenstein and his wife, Heather Morgan, who was involved in the largest crypto hack of Bitfinex in 2016. $3.6 billion worth of crypto was seized following the arrest.
