Days after a cryptocurrency racket that targeted over 7,000 people was busted, 45-year-old accused Kamal Singh first went to Dubai so he could take forward his plan of starting a new cryptocurrency mining set-up in Georgia. But his luck ran out when he was arrested by Delhi Police from IGI Airport on April 25 after arriving from Dubai. Singh was arrested along with his brother-in-law Vijay Kumar, a computer engineer, on charges of duping people to the tune of Rs 100 crore. Both accused would make people invest in a ponzi scheme involving Bitcoins through a website and would later flee with the money, police said.
“The Cyber Cell has filed a chargesheet against Singh and Vijay in a Delhi court, and police are conducting raids to nab their associates,” a senior officer said.
“Singh, after graduating in 1991, had started working with a private MNC, but he later opened a real estate business in Bhikaji Cama Place in 2013. He faced losses after property rates went down after which he started looking for a new business. That’s when he met one Sohail, who suggested that he should invest in bitcoin, blockchain and cryptocurrency,” police stated in their chargesheet.
As per police, Sohail told Singh that he worked for Surender Singh Alaghh and Amit Bhardwaj, a ponzi scheme kingpin accused of scamming thousands by promising outlandish returns on investments in Bitcoins.
“After gaining some experience with Bhardwaj, Singh studied cryptocurrency and shared his plan with Vijay. The duo started their own cryptocurrency scheme and roped in Sohail and Alaghh. They launched their website and hired a Gurgaon-based company for Rs 20 lakh,” police said.
“The company prepared a wesbite and a cryptocurrency wallet for them. At their office, Vijay looked after IT and admin work while Sohail and Alaghh brought investors by promising them 12% returns. Within some months, they roped in 7,200 investors,” police said.
When he realised some investors had complained against him, he fled to Dubai. But he was caught when he returned to India to meet relatives.
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