The website has been flagged as a “fake crypto platform” on several portals. However, the defendants continue to operate by creating new websites and luring people in by offering financial advisers, police said.
The Delhi Police Criminal Branch is conducting a thorough investigation into a gang that systematically defrauded hundreds of people on social media platforms, allegedly under the guise of offering financial advice on cryptocurrency trading.
The gang mainly operates from WhatsApp and Telegram groups where they sent daily updates on crypto stocks and trading, police said. Police suspect some of the defendants are in Malaysia as they retrieved details of more than 10 phone numbers with a country code.
The victims were tricked into using a website allegedly from a Malaysia-based trading company and investing money there, police said. One of the plaintiffs, a Delhi businessman, is said to have lost more than Rs 85 lakh in the case, police added. A case under the articles of cheating and computer law has been registered.
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The website has been flagged as a “fake crypto platform” on several portals. However, the defendants continue to operate by creating new websites and luring people in by offering financial advisers, police said.
Many victims were reportedly asked to transfer their savings from their bank accounts and wallets of a legal platform, which is used to buy and trade cryptocurrencies, to the company in Malaysia.
A senior police officer said several WhatsApp and Telegram groups had been created and hundreds of people had been added. “Group admins offered the services of financial advisors who sent advice on crypto trading and investing. Victims were invited to register on the website and start investing. The gang attracted people by showing that it had analysts from the United States and other countries. Initially, few victims even received good feedback,” the officer said.
The plaintiffs told police that “expert financial advisers” regularly walk them through cryptocurrency. A plaintiff began trading small amounts and made a profit, police said.
After the victims were roped in, the defendants offered them a special program called '1V1' where they were given the opportunity to 'invest 10,000 to 100,000 US dollars', police said.
“The victims were told that they would make a profit of approximately $2 million. Analysts have assured that they will bear the losses, if any. Many accepted… and invested heavily. However, they were later removed from WhatsApp groups and asked to connect with other analysts,” the officer added.
© The Indian Express (P) Ltd
First published on: 2023-06-29 at 04:53 IST