Thane police bust cryptocurrency racket

According to police, the 2,500 people had invested and subsequently lost Rs 500 crore after investing in the cryptocurrency that had been launched by Lakhanpal at a well-known hotel in Dubai in September last year at an ‘Initial Coin Offering (ICO)’.

Delhi molestation, delhi sexual harassment, punjabi bagh molestation case, delhi crime, delhi news, indian express news

The police have so far arrested only one person who provided technical help to the operation. (Representational)

THE THANE police on Monday busted a cryptocurrency racket allegedly run by Amit Lakhanpal who is believed to be in Dubai along with four others, who cheated nearly 2,500 people over the past 10 months. According to police, the 2,500 people had invested and subsequently lost Rs 500 crore after investing in the cryptocurrency that had been launched by Lakhanpal at a well-known hotel in Dubai in September last year at an ‘Initial Coin Offering (ICO)’. The police have so far arrested only one person who provided technical help to the operation. The name of an assistant police inspector linked to the Thane police is also being probed on suspicion that he is linked to the case.

Thane police commissioner Param Bir Singh said, “Amit Lakhanpal had launched a redeemable cryptocurrency called ‘Money Trade Coin (MTC) at a Initial Coin Offering (ICO) on the lines of Initial Public Offering (IPO) in September 2017 at Dubai where it started with a value of three dollars. He had then raised the value of one MTC to 6000 dollars. Nearly 2500 people had made investments in MTC worth nearly 500 crores. However, people could not sell the cryptocurrency or make any withdrawals after they purchased it. The use of cryptocurrency is not allowed. Here, they cheated people by taking money in the guise of investing it in cyrptocurrency and not returning the money.”

A team from unit 1 of the Thane crime branch conducted raids on the two offices of the Flintstone group located at Ghodbunder road and Vikhroli. From there the police arrested one Hafiz Kazi (26), a Mumbra resident, who was the technical brain behind the operation. He had developed the software through which the blockchain operated. Lakhanpal came to know that complainants had approached us and fled to Dubai before we could get to him. Apart from Lakhanpal, we are also on the lookout for three others including one Sachin Shellar, who served in the accounts department, Singh said.

Singh said Lakhanpal had created a good profile for himself so that people could trust him. Though he had studied till class 8, he had a fake degree to show that he had done a degree in business administration from Auckland university. He had also launched a magazine that carryied ‘inspirational quotes’ and photographs with several celebrities including international cricketers, politicians and bollywood stars. Lakhanpal had a profile in the Middle East edition of a reputed international magazine. He has also written a book on cryptocurrency and had forged fixed deposit receipt of Rs 250 crores that he showed investors.

“As a result of these things, people trusted him and invested in the cryptocurrency launched by him. He was also in the process of launching a debit card where the cryptocurrency could be used to make purchases on e-commerce sites,” the police commissioner said. Deputy commissioner of police Abhishek Trimukhe said there was an FIR registered against Lakhanpal in Rajasthan as well. Singh said they have found some links of an assistant police inspector of Thane police with the scamsters and are investigating it.

Stay updated with the latest - Click here to follow us on Instagram