Bitcoin and other cryptocurrencies are based on Blockchain technology and Decentralized Finance and are advertised as nearly untraceable. However, dubious players will find ingenious methods to fool naive investors.
NDTV revealed that a scam was perfected by a scammer based in West Asia. With one website, the scammer was able to run a scam worth Rs 1,200 crores.
Fraud done with just one website
The Directorate General of Enforcement has registered a case against Nishad K, a native of Malappuram, 31 years old, for carrying out a crypto fraud of Rs 1,200 crores in the country. Most of the victims were non-resident Keralites (NRKs) who had been promised huge profits by investing in a non-existent cryptocurrency called ‘Morris Coin. Nishad was able to perform deception with just one website – morriscoin.com
The ED, which is investigating the case, has attached the assets of Nishad obtained from his ill-gotten wealth. The investigation revealed that the fund had invested in real estate in Tamil Nadu, Karnataka and Kerala projects. Nishad, the site’s creator, did not give an address or a phone number. However, people trust him and invest money with the guarantee that they will get Morris Coin and three percent of the invested amount as daily profit.
Kingpin was arrested in 2020 but was released on bail
The police can get their hands on seven people; The main kingpin, Nishad, was active underground. He was previously arrested in connection with a Morris Coin According to Kannur ACP PP Sadanandan, he registered the fraud case at Pookoottupadam police station in Malappuram on September 28, 2020. However, he managed to give it to the police.
PP Sadandan was instrumental in uncovering the fraud. The investigation revealed that the people arrested used their bank accounts to collect money from people. Most of the bank accounts are in the rural branches of Ujjivan Bank in Kerala to collect money from the people. Investigators were surprised to discover transactions ranging from Rs 90 to Rs 100 from each of the arrested people who helped Nishad carry out the scam.
The pattern operands are just like any other Ponzi scheme. First time investors invested small amounts, and trust was gained by quick payouts as investors invested larger amounts and fell victim to scams.
Cryptocurrency consultant Sinjith K Nanminda says that crypto is still a gray area for many people. Bitcoin, which is valued at a fraction of what it is today, often aids scammers in trapping gullible people. It’s easy to defraud people in the name of cryptocurrency. Nishad did the same, and ignorant people fell in love with it.