New Money Trade Coin (MTC) Member Gets Arrested in India in an Alleged $70 Million Crypto Scam
A group of individuals accused of conducting a crypto-related scam have been arrested by the Indian police. Apparently, they have been involved in a scam related to virtual currencies that reaches $71.6 million. The information was released on January 7 by the local news site The Indian Express.
This is not the first arrest performed by the Indian police related to virtual currency scams. The Thane police were able to discover this crypto-related scam in Mumbai arresting Rohit Kumar. This scam was launched by the CEO of a real estate firm, Amit Lakhanpal. Apparently, they were selling a token known as Money Trade Coin (MTC) but it was never traded on any crypto exchange in the market.
According to police sources cited by The Indian Express, the accused individual had an office in Delhi’s Vikram Nagar and it was used to collect money from investors that promised high returns.
In order to attract more investors, the company inflated artificially the price of the token and receive more funds. Once the price of the token fell, investors couldn’t sell their funds. This is something that affected hundreds of individuals. The accused individual was accused of cheating, criminal conspiracy and banning.
Apparently, Lakhanpal performed some activities and events in Dubai that were even attended by members of the royal family. As per one of the police officers involved in the investigation, the man in charge of this scam had ‘one of the royals’ as a partner.
India has been severely affected by cryptocurrency scams. Due to this situation, the government has decided to impose very hard regulations on the crypto market and companies involved in the space. Several firms had to stop offering services while others have been simply banned from operating.
Regulatory agencies are becoming increasingly active in the space to avoid these kinds of scams and fraudulent activities.