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Bitcoin Fraud

Next time you fall for lucrative arrangements on a digitalcurrency/ cryptocurrency or popularly said Bitcoins, reconsider. This pack of lawbreakers drifted a fictitious cryptocurrency, set up a website and tricked several people in Delhi and different parts of the nation.

The rising estimation of bitcoin is pulling in a large number of investors in India. Consistently, around 2,500 individuals are assessed to get tied up digital currency created by people around the world running computers using software that solves complex mathematical problems. But this surge in demand has an ugly side: scamsters are benefiting from this bullish pattern to hoodwink individuals.

bitcoin fraud, kislay chaudhary

Most nations don’t perceive bitcoin as a currency. The Indian government is sitting tight for the report of a specialist panel set up to inspect the subject before taking a conclusive position on cryptographic forms of money – digital assets such as bitcoin use encryption techniques to secure transactions, control the production of extra units, and to check the transfer of assets.

According to Mr. Kislay Chaudhary, Founder and Chairman of Indian Cyber Army and a cyber security consultant to several government agencies told ponzi schemes involving cryptocurrencies started in India after Initial Coin Offerings became a trend in mid-2016. Initial Coin Offerings allow newly-launched businesses to raise money online without having to follow the regulations that accompany Initial Public Offerings. “A bitcoin is nothing but an open source programme which can be edited and replicated into newer forms and used for the purpose of scams i.e bitcoin fraud can be initiated on the pretext of ICOs,”Mr. Kislay Chaudhary said.

A Police official told “The accused organized lavish seminars in different places, including Mumbai, Chandigarh, Raipur and Nagpur, for business promotion, at these seminars; they would lure people into investing in this coin claiming that its rate will cross the cost of bitcoin one day. They used to invite eminent personalities to these seminars to attract more and more people.”

In any case, this has not prevented individuals in India from being tricked by conmen running ponzi plans who persuade that they are investing in virtual currencies. A ponzi scheme is a fraudulent investment operation in which returns for more established financial specialists are paid from cash got from new speculators, rather than benefits from a genuine business action.