Bitcoin and other cryptocurrencies are based on Blockchain technology and Decentralized Finance and are touted to be almost unhackable. However, dubious players find ingenious methods to dupe the naïve investors.
NDTV reveals that a scam has been perfected by a fraudster based somewhere in West Asia. With a website, the fraudster was able to pull out a fraud worth Rs 1,200 crores.
Fraud operated with just a website
The Enforcement Directorate has registered a case against 31-year-old Malappuram native Nishad K for pulling out a cryptocurrency fraud running into Rs 1,200 crores in the country. Most of the victims are non-resident Keralites (NRKs) who were promised huge returns on investment in a non-existent cryptocurrency called ‘Morris Coin. Nishad was able to carry out the deception with just a website — morriscoin.com
The ED, which is investigating the case, has attached properties of Nishad obtained from his ill-gotten wealth. The investigation revealed that the fund was invested in real estate in Tamil Nadu, Karnataka, and Kerala projects. Nishad, who created the website, did not give any address or phone number. Still, people believed him and invested money on the assurance that they would get Morris Coin and three percent of the invested amount as returns daily.
Kingpin arrested in 2020 but jumped bail
The police could get their hands on seven people; the main kingpin, Nishad, has gone underground. He was earlier arrested in connection with a Morris Coin fraud case registered at Pookoottupadam police station in Malappuram on September 28, 2020. However, he managed to give the police the slip, according to Kannur ACP P P Sadanandan.
PP Sadanandan was instrumental in uncovering the fraud. The probe revealed that the arrested persons used their bank accounts to collect money from the people. Most of the bank accounts were in the rural branches of Ujjivan Bank in Kerala to collect money from the people. Investigators were astonished to find transactions of Rs 90 crore to Rs 100 crore from each of the arrested who helped Nishad carry out the fraud.
The modus operandi was just like any other Ponzi scheme. Investors first invested small amounts, and the faith was gained by making prompt payments when the investor invested more significant quantities and became a victim of the fraud.
Cryptocurrency consultant Sinjith K Nanminda said that cryptocurrency is still a grey area for many. Bitcoin, which was valued a fraction of what it is today, often aid fraudsters to ensnare the gullible. It’s easy to dupe people in the name of cryptocurrency. Nishad also did the same, and ignorant people fell for it.
- Goldman Sachs Says Mainstream Crypto Adoption Not Enough to Boost Bitcoin (BTC) Price
- Fidelity Eyes for ETFs Tied to Metaverse After the SEC Rejects Its Spot Bitcoin ETF
- Rio De Jeneiro’s Mayor Reveals 1%Of Its Treasury Reserves Will Be Poured Into Cryptocurrencies
- Fake Grimacecoin Jumps 285,000% After McDonald’s’ Response to Elon Musk Tweet
- Turkey President Tayyip Erdoğan Orders For Metaverse Research
- After Twitter, Reddit Might Allow Users To Add NFT as Profile Picture
- Facebook’s Bumbling Crypto Venture Diem to Wind Down, Sell Assets
- Breaking: Valkyrie Planning To List Bitcoin Mining ETF On NASDAQ
- Just-In: OpenSea Reportedly Planning to Integrate Solana And Phantom Wallet
- Can Bitcoin’s Price Hit $1 Million? Ark Invest Is Confident It Can Happen In 2030
- Solana Creeps Higher, Looks To Revisit January Highs AT $177.0
- Ethereum Price Analysis: Fibonacci Retracement level 0.618 Triggers Recovery Rally In ETH Coin
- BTC Price Analysis: Death Crossover Brings Nightmares On Satoshi Street; Is This A Buying Opportunity?
- Bitcoin Death Cross Haunting Investors, Will BTC Make or Break?
- DOGE Price Analysis: Highly Influential Bearish Trendline Undermines Bullish Attempts; Buy, Sell Or Hold?
- Terra Price Analysis: Will LUNA Price Bounce Back at 0.382 Fibonacci Retracement?
- SAND Price Analysis: Sandbox Price Losses 50% Retracement Level, Good Time to Buy?
- LINK Price Analysis: Chainlink price reclaims 200-day EMA, Emerging trendline Suggests More Upward Price Movement
- Harmony Price Analysis: Rising Parallel Pattern Could Lead 30% Growth In $ONE Price
- Ripple Price Analysis: XRP Bears Struggle To Breach $0.7 Support Zone, Is A Reversal Next Move?