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Bengaluru: Man arrested for cheating 2,000 investors in ponzi scheme linked to cryptocurrency

After a preliminary probe into the matter, CCB sleuths explained that the accused had allegedly promised compounding returns at Rs 1 lakh by December 2021 and at Rs 25 lakh by December 2025 after investing Rs 15,000.

By: Express Web Desk | Bengaluru |
June 23, 2021 11:44:38 am
According to officers from the Economic Offence Wing, the trading and chain-link scheme was operated after the accused, identified as Ranganath D S, launched an online company last year promising high returns to investors.

The Central Crime Branch (CCB) of the Karnataka police Tuesday confirmed the arrest of a 39-year-old man for allegedly cheating over 2,000 investors in a multi-crore cryptocurrency Ponzi scheme.

According to officers from the Economic Offence Wing, the trading and chain-link scheme was operated after the accused, identified as Ranganath D S, launched an online company last year promising high returns to investors.

“The CCB has arrested the director of a company accused of cheating more than 2,000 people. The accused operated a website named Digitechmark through an unregistered company,” City Police Commissioner Kamal Pant said. “The website promised high returns on investments and collected thousands of crores of rupees. The investors’ money was routed to a bank account from where it was later used to buy and sell Tron, a cryptocurrency, on an exchange,” he added.

After a preliminary probe into the matter, CCB sleuths explained that the accused had allegedly promised compounding returns at Rs 1 lakh by December 2021 and at Rs 25 lakh by December 2025 after investing Rs 15,000. “Meanwhile, those who invested Rs 50,000 were promised Rs 3 lakh by December 2021 and Rs 2 crore by 2025,” officials explained, pointing out the same was linked towards trading ‘Tron’ cryptocurrency.

Further, investigating officers found that Ranganath convinced clients that Tron was the fastest-growing cryptocurrency in the market and social media experts were roped in to attract more such investors. “Among the victims who fell for such offers were people from Bengaluru, Mangaluru, Mysuru, Hubballi, and Dharwad,” CCB sleuths added.

The accused has been booked under various sections of the IT Act and Prize Chits and Money Circulation Schemes (Banning) Act and the Indian Penal Code. “An investigation is now underway to find further links to the scam,” the police said.

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