Himachal Pradesh Police Scammed by Fake Cryptocurrency

Himachal Pradesh Police Scammed by Fake Cryptocurrency

VoM News Desk | October 19, 2023 | 06:00 PM IST | Breaking News, Himachal Pradesh | Follow on Google News

Himachal Pradesh Police Scammed by Fake Cryptocurrency: A Deeper Dive

Himachal Pradesh Police Scammed by Fake Cryptocurrency: A Deeper Dive

A shocking revelation has emerged in Himachal Pradesh’s Mandi district, where over a thousand police personnel became victims of a fraudulent local cryptocurrency scheme. The perpetrators of this elaborate scam have left many officers financially devastated, while others unwittingly became promoters of the fraudulent cryptocurrency, ultimately roping in more investors. This intricate scheme, under the scrutiny of the Special Investigation Team (SIT), has duped at least one lakh individuals, with over 2.5 lakh suspicious IDs, including multiple IDs of the same person.

The Scammers’ Elaborate Web of Deceit

To entice investors, the scammers introduced two cryptocurrencies, ‘Korvio Coin’ (KRO) and ‘DGT Coin,’ supported by manipulated websites displaying altered digital currency prices. The promise of high returns in a short time lured in initial investors who, in turn, enlisted more participants within their networks. Surprisingly, some policemen, as well as educators and others, joined the scheme in search of quick gains. While the majority of police personnel incurred losses, their endorsement of the cryptocurrency project inadvertently fostered trust and credibility among investors.

The Dastardly Evolution of the Scam

Remarkably, some police officers who fell prey to the cryptocurrency scam eventually opted for voluntary retirement schemes (VRS) and went on to become promoters themselves. This multi-faceted scheme has caused significant financial turmoil, leading to a surge of caution and scrutiny. Himachal Pradesh’s Director General of Police, Sanjay Kundu, has vowed to pursue the wrongdoers vigorously, stating that the investigation is proceeding systematically.

The Cryptocurrency Conundrum

Cryptocurrency is a digital form of currency that operates independently of central authorities, such as governments or banks. It relies on blockchain technology to function as a medium of exchange, making it a prime target for fraudulent schemes.

The cryptocurrency scam took root in 2018, primarily affecting individuals in Mandi, Hamirpur, and Kangra districts. In some instances, a single individual managed to recruit up to 1,000 people. The scammers utilized a blend of misinformation, deception, and threats to maintain control and continue exploiting unsuspecting investors. They manipulated cryptocurrency prices, resulting in substantial financial losses for the victims.

The investigation also unveiled the existence of other deposit schemes, promising extravagant returns, such as a 10 percent monthly return on a ₹90,000 deposit. As a cautionary measure, the police have advised the public to exercise extreme caution when approached with schemes promising returns exceeding 12 percent annually.

Two principal suspects, Sukhdev and Hemraj, were arrested in Gujarat, admitting to a staggering liability of ₹400 crore. The alleged mastermind, Subash, remains at large, leaving authorities with a complex task of bringing all the culprits to justice.

VoM News Desk

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