Police Assaults Indian Ponzi Scheme-Funded Cryptocurrency Mine

Not long after the April 25th arrest of the owners of the mine, Kamal Singh and Vijay Kumar who were accused of gathering Rs 100 crore (equivalent to about $14.9 million USD) via an illegal Ponzi scheme advertised by bits2btc.com. The Dehli Police’s Cyber Cell directed a break-in on a cryptocurrency mining operation that was taking place in a 4000 square foot complex in Dehradun.

According to local reports, over 100 Ethereum mining rigs comprised of “high-powered computer processors, 500 graphics cards, and servers,” were found by the police. It was reported that the mine owners “told curious neighbors that [the mine] was a computer processor unit with servers of a big company.”

Gainbitcoin.com reports that as Mr. Singh and Mr. Kumar were interrogated, the police was able to establish the fact that the Ethereum mining operation had been created by the bits2btc Ponzi scheme. The accused had extended their deceitful operations in other areas, with two newly launched cryptocurrencies, HBX and Mcap, not forgetting the Ponzi scheme.

The property that was housing the mine was rented by the accused since September 2017, with eight people employed as agents of maintenance for the mining hardware. According to the police’s estimation, the cryptocurrency might have generated Rs 70 lakh (almost $105,000 USD) after three months operating.

The third co-founder of bits2btc.com is S.S. Alagh; local officers have been deployed to arrest him.

Officers Jagdish and Yadav, the arresting agents, stated that they had identified a disagreement between Mr. Kumar and Mr. Singh. Mr. Kumar filed a police complaint declaring a kidnap on the part of Mr. Alagh and counterparts after Mr. Alagh had escalated.

An officer said, “Kumar had lodged a complaint with the local police alleging that Alagh and his associates had kidnapped him.” He also added that the complaint had been of help to them in making the arrests.


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