Kerala police have arrested four people from Kannur on Monday in connection with a crypto scam where they laundered money through cryptocurrency deals. The accused -Muhammed Riyas, C Shafeeque, Munavvarali and Muhammed Shafeeque – have been charged with embezzling crores from investors in connection with a cryptocurrency deal. However, the supposed kingpin of the racket, Nishad is absconding and is believed to be in the Middle East.
The accused are said to have raised crores of rupees via an online website created in the name of a fake company formed in Bengaluru. The company, named Long Rich Technology, was used as a front to scam investors in this latest crypto scam.
They have so far raised ₹100 crores from investors promising them 2-8% returns per day in cryptocurrency. The police have stated that they found around ₹40 crores transacted through the account of one person who has been arrested and ₹32 crores through the account of another. Once the transitions with customers were done, the accused seemed to have moved the funds to the account of a person named Nishad.
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A similar case is under Crime Branch investigation in Malappuram and had frozen Nishad’s account which had around ₹34 crores. Nishad was arrested in connection with the case, but secured bail and went absconding.
So far, the police have received only one complaint from Kannur.
Writer’s opinion: This case is another example of how the aura of high returns from cryptocurrency trading is used by conmen to scam people. Cryptocurrencies can seem daunting to someone who does not know how it works, and such a crypto scam is designed to prey on this lack of knowledge. If you want to know more about the basics of cryptocurrency, do check out our video – Crypto For Beginners. Also, only use registered crypto exchanges to trade in cryptocurrencies and if someone approaches you with a crypto scheme that seems to be too good to be true, it probably is.