As the cryptocurrency market rapidly evolves, some investors across the globe are looking for quick ways to create insane profits through it. Consequently, attackers reach out to them by making false promises of insane profit, resulting in investors being defrauded, which happens most of the time.
Recently, a similar incident occurred in India where police personnel lost a significant amount of money in a Ponzi scheme.
Over 200,000 victims, including police personnel, lost $240 million
According to local media reports, more than 1,000 police personnel fell into the trap of a massive cryptocurrency scam. This scam not only duped police personnel but also more than 200,000 other unsuspecting victims who lost an estimated value of around Rs. 2,000 crore ($240 million).
Initially, it was reported that only $24 million was lost in this crypto scam, but recent investigations reveal that this crypto scam is ten times larger than the previously reported value.
According to the report, these scammers targeted investors with attractive false promises of significant returns on their investments in cryptocurrencies like Korvio Coin and DGT Coin. As of now, the mastermind behind this crypto scam is still at large. Before anyone realized they had fallen into a trap, the perpetrator had fled the country.
This Ponzi scheme trapped both police officers and unsuspecting victims in Himachal Pradesh. During the investigation, it was also found that some victim police officers had promoted this Ponzi scheme within their community, expanding its reach.
The media report also revealed that some police officers suffered significant financial losses due to the scammers. However, two suspects, Sukhdev and Hemraj, were recently arrested and confessed to being responsible for a significant $48 million crypto scam.
A special team conducted searches across 35 locations, leading to seven arrests. In total, nine individuals have been arrested in connection with the cryptocurrency scam. India’s lack of cryptocurrency regulations has contributed to a rise in such scams.
The call for Cryptocurrency regulation in India
This incident highlights the need for cryptocurrency regulations to protect investors and prevent further exploitation.
Overall, it is a lesson for those who seek quick ways to make money, as the overall cryptocurrency market is highly volatile. Beginners new to investment should stay away from false promises and the cryptocurrency market itself because investing in crypto requires a proper study of the crypto projects, their roadmaps, and the latest news in the crypto community.