Police in India yesterday raided an office that was responsible for running a crypto Ponzi scheme worth millions after managing to exploit some gullible investors. The scheme was led by Dr. Amit Lakhanpal who was the CEO of CMD Flintstone Group and Money Trade Coin Group.
The police officers claim that Lakhanpal was responsible for creating a crypto known as Money Trade Coin (MTC) which was heavily marketed in India in order to lure in investors in other speculative deals.
The officers have identified an office in Orion Business Park belonging to a real estate development agency, Flintstone Group to be at the center of the scam. From there, MTCG employees ran majority of the scams promising unsuspecting investors 10 to 20 times returns on their investments within 4 months according to a report from Times of India.
It has now been revealed that some investors were even promised Swiss bank accounts, Caribbean citizenships, and real estate if they were to invest with the group. The amount acquired from the entire Ponzi scheme is now estimated to be in the range of $6,699,450,000.
During the raid of the company offices, police were able to capture and detain Taha Kazi who happens to be one of the technical support staff. However, they are yet to capture the masterminds of the crypto Ponzi scheme, a group that includes Lakhanpal and 4 other members.
The scam came to the attention of Police after a complaint that was filled by Pravin Agarwal, a local Delhi businessman after he failed to receive the promised payouts from the company.
Abhishek Trimukhe, the deputy commissioner of police commenting on the issue says:
“We have registered the offense at Chitalsar police station. The accused were trading a cryptocurrency, called Money Trade Coin, and duped several people.”
It’s yet to be determined the extent the crypto Ponzi scheme has affected the people of the region, however, police plan another raid in another office based at Kailas Industrial Park.
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