Indian police officer Chandradhar was arrested for stealing Bitcoin worth INR 1.8 crore during a crypto scam investigation. He is the fourth person arrested in the ongoing 2020 Bitcoin scam case. Chandradhar allegedly accessed Bitcoin wallets illegally and destroyed evidence related to these transactions. He faces charges under several sections of the Indian Penal Code. Two other police officers have also been arrested for similar crimes, indicating collaboration among officials to manipulate and access critical information unlawfully.
India has seen an increase in Bitcoin scams and frauds, leading regulators to tighten oversight of the crypto sector. In a recent case, the Central Bureau of Investigation conducted a nationwide search operation to crack down on an app-based fraudulent investment scheme. Investigators seized incriminating documents and digital evidence during the search, revealing that fraudsters enticed victims to invest in the app by guaranteeing huge returns on Bitcoin mining investments. Around 150 bank accounts allegedly used by the accused to collect funds from investors have been identified. The investigation is ongoing.
The incident is reminiscent of the 2018 ‘Gain Bitcoin’ Ponzi scheme orchestrated by businessman Amit Bhardwaj, where over 8,000 individuals were defrauded. Bhardwaj manipulated and enticed investors to exchange Bitcoins with the promise of high returns. He introduced an 18-month contract guaranteeing a 10 percent yield, which ultimately turned out to be fraudulent. The Indian authorities seized $11 million from a top British-Indian businessman who received Bitcoin from Bhardwaj. This case highlights the dangers of Ponzi schemes and fraudulent investment schemes in the crypto sector.
The arrests of Chandradhar and other police officers reveal a concerning trend of officials colluding with hackers and scammers to carry out crypto scams. The manipulation and illegal access of critical information by those in positions of authority pose a significant threat to the integrity of the crypto sector in India. Tighter regulations and oversight are crucial to combatting such fraudulent activities and protecting investors from falling victim to scams. The ongoing investigations into these cases demonstrate the government’s commitment to rooting out corruption and fraud in the crypto space.
The scale of Bitcoin scams and frauds in India highlights the need for greater awareness and education among the public about the risks associated with investing in cryptocurrencies. Investors must exercise caution and conduct thorough research before participating in any crypto-related activities to avoid falling victim to scams. The Indian authorities’ crackdown on fraudulent schemes and Ponzi schemes underscores the importance of regulatory measures to safeguard investors and maintain the integrity of the crypto market. Continued vigilance and cooperation between law enforcement agencies and regulatory bodies are essential to combatting financial crimes in the crypto sector.
