The Criminal Investigation Department (CID) of India is featured in the altcoin news for arresting four people accused of operating a crypto-related Ponzi scheme. The Indian authorities arrested Vijay Prajapati, Dhiraj Patel, Kamruddin Syed, and Ashiq Shaikh, all of which are the alleged creators of the KBC Coin cryptocurrency as a report by the Times of India shared on July 4.
The report cites CID which argues that KBC is a Ponzi scheme. Launched 6 months ago, the price of KBC has not moved since. This is why the Indian authorities believe that it was a potential scam.
The KBC coins were reportedly issued at a value of 10 paisas for each piece, with a promise that they would skyrocket in value to 10 rupees in a very short time. As the coming altcoin news then shared, people bought the coins and expected them to rise 100-fold.
According to one CID member, an individual named Baljeetsingh Lashkariya first promoted KBC via a pyramid scheme. The Indian authorities are investigating this case. Meanwhile, the promotional materials show that the “first investor in the chain would get an incentive from the last circle of investors. This offer played a major role in bringing more investors to the company.”
Lashkariya and another promoter named Mohan Patel have reportedly “gone underground” about the case. As reported by many best cryptocurrency news sites before this, Indian authorities and legislators have proposed a bill that would punish crypto enthusiasts in the country with up to 10 years in jail for violating the country and its anti-crypto laws.
Still, no one knows if this bill is going to pass. The enforcement policy that the Indian authorities are carrying out is apparently part of the bill – which is titled “Banning Cryptocurrencies and Regulation of Official Digital Currency Bill 2019,” according to reports from The Block.
At the end of May this year, SEC sued a California resident on charges of selling unregistered securities and conducting a Ponzi scheme disguised as a cryptocurrency – and taking away $26 million from users. The case in India is very similar to this case, and the Indian authorities should definitely sanction it completely.
Bitcoin Reaches The Second Inning As Bakkt Launch Nears
“Bakkt’s launch is expected late in the current quarter.” “Bakkt could be a huge catalyst for institutional participation in the crypto market.”Bakkt hosted a summit this week at the NYSE and the company behind it-ICE stated that the things are looking quite bullish for the bitcoin cryptocurrency in the latter part of the year. According to the Fundstrat note, there is a robust turnout at the conference of more than 100 investors. The Commodity Futures Trading Commission which is the most important agency in the launch of Bakkt’s bitcoin futures contracts also had representation. Fundstrat’s reports show that the CFTC is seeing massive growth in demand and interest for Bitcoin futures from the Public. The bitcoin futures contracts by the CME and CBOE are still considered as the mark of the beginning of the crypto bull market. This is why bitcoin reaches the second inning since soon it will be clear whether the history will repeat itself again. As the latest cryptocurrency news report, Ari Paul, the CIO of BlockTowerCapital participates in the Bakkt event and he is helping with the new addition of users into space. The report also shows that Paul believes that retail adoption will be massive once the app and UI make crypto on-ramps safe and easy to use as PayPal.
Australian Couple Loses $900,000 In A Crypto Scam
“That was the whole of our superannuation – that’s now gone.”They didn’t explain how the scheme actually worked but Taylor commented that it was during a crypto trading scam website that promised high returns. He added that they decided to invest because the site ‘’looked legitimate.’’ The couple decided during a trip around the country to invest in the scam. They stated that the money basically disappeared and left the couple and many other Australians in the bankruptcy. Taylor told 7News that he had to go back to work and sell his old 1965 Pontiac in order to make the ends meet. This is not an isolated case according to the reports. On the contrary to what people think, crypto scams have increased massively since 2017 according to the reports issued by the Australian Competition and Consumer Commission since 2018 that the losses generated by the crypto scams reached about $6.11 million which shows a massive 190 percent increase over 2017. With the new addition of the $990,000 already gone, 2019 sets a new trend for crypto scams and the Australian Securities and Investments Commission is aware of this happening. There is a 32 percent increase in fraud since 2018 with more than 2,400 reported cases. The Australian watchdog announced the new corporate action plan for 2018 that the crypto sectors and ICOs are the number one priority. If the new policies become a success the country will be able to reduce the crypto scam phenomenon. One strategy that showed to be successful among the scammers is to usurp the identity of celebrities to deceive users. The most popular case was the one of High Jackman which guaranteed returns of more than 10,000 percent. The cryptocurrencies have characteristics that could complicate the protection of users in times of fraud mainly because the transactions are irreversible which makes it impossible for any entity to return funds to a scam victim. Also, the network is decentralized and removes the control from the bank but also there is a high level of anonymity which makes it difficult to know who owns a particular wallet as noted in the altcoin news reports.
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