Indian Authorities Bust $120 Million Crypto Ponzi Scheme
Local authorities in the Indian state of Odisha have taken down a $120 million crypto Ponzi scheme. The Economic Offences Wing (EOW) of the state police arrested two central figures behind the fraud, including the mastermind who constantly changed his location. The scheme involved the STA Crypto Token and affected victims across several Indian states.
Key points:
– Victims invested in the STA Crypto Token and recruited others in a multi-level marketing scheme.
– The scam resembled the infamous OneCoin heist in crypto history.
– The investigation revealed that the scheme had a network of 200,000 people across India.
– The authorities cautioned people against investing in Ponzi schemes promising quick wealth.
– The Enforcement Directorate is actively investigating virtual digital currency fraud instances.
Indian authorities have been actively cracking down on fraudsters in the crypto space. The Solar Techno Alliance (STA) token, which impersonated a genuine crypto token, hosted an extravagant event in Goa recently. Red flags were raised as no authorized apex body approved the investment scheme, and the authorities discovered that STA operated solely in India despite hosting its website from Iceland.
The Indian government has issued a public advisory warning against Ponzi schemes and the promises of quick wealth. The Enforcement Directorate is currently investigating several instances of virtual digital currency fraud, uncovering crimes worth over $130 million under the Prevention of Money Laundering Act. This recent bust serves as a reminder for crypto investors to be cautious and informed about potential scams in the market.
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