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Indian Authority Discovered Multi-million Dollar Crypto Scam

By Robin Wong | June 5, 2019
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Indian Authority Discovered Multi-million Dollar Crypto Scam Involving BitConnect Promoter

The Indian police force has reportedly uncovered a cryptocurrency scam, which caused million dollars worth of financial damage in the country, that is connected to a BitConnect promoter.

Reported by the Times of India, Divyesh Darji was one of the promoters for BitConnect – the now-closed exchange involved in is one of the largest coin value collapse in crypto history – has been charged with conning investors into buying “Regal Coin”, by making false promises of an improbable return, up to 5000% of the original invested fund.

A member of the Criminal Investigation Department (CID) – the Indian governmental body in charge of bringing down the scam – revealed that the scam stole tens of millions of rupees from investors.

According to CID, the investment scheme was originally initiated in 2017, when Darji started advertising Regal Coin for 2$ to buyers, who would earn up to $100 in return.

“Darji had promised that the investor would get the principal amount in 99 days. He had also promised to give interest on the principal amount as per robotic trading profit along with 1% to 1.6% bonus as a referral bonus at every 11 days.” A CID officer claimed.

The scamming operation was only placed under legal suspicion after Vishal Savalia – a crypto investor located in Surat, India – reported a lost fund of around $26,783 to the Regal Coin scam to CID.

“Savalia had allegedly given the money to Darji’s daughter, Dimki through another accused and Darji’s aide, Ramdayal Purohit and Dimki herself had downloaded Regal Coin app in Savalia’s cellphone and get him registered on its website.”

However, only Purohit is currently in police custody, while Darji has been bailed out a month earlier, and is now on the run. This is the third legal case with the involvement of Darji.

Recently, the central bank of Rwanda released a PSA – public service announcement – to warn against the crypto-related crimes in the nation, reported by The Crypto Sight on June 3.

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