Cyber Crime Division of Delhi Police made tremendous development in unfolding the scam related to cryptocurrency instigated by the organization identified as “Flintstone Group.”
Allegedly, the group launched a fraudulent cryptocurrency called Money Trade Coin (MTC) and tricked nearly 25,000 investors with promises of high returns. Already three people were arrested in the matter which included managing director Amit Lakhanpal, his head accountant Sachin Shelar of the Flintstone Group. Now, Delhi Police arrested a fourth man on Tuesday, which identified as, Rohit Kumar.
The roots of this scam go very deep, as Flintstone Group went to great heights to convince investors. At one point they even posed as Union Finance Ministry officials with fake backstories and I.D. cards. Under their Money Trade Coin project, they even join a group to approach the Delhi High Court to argue against the harsh stance of Reserve Bank of India towards cryptocurrencies.
Representing the project accused Lakhanpla attended events in Dubai reportedly claiming his cryptocurrency would soon be legalized by the government with which one will be able to buy real estates. He also presented MTC as a multinational entity with offices in Italy, UK, Malaysia, and Singapore.
One police officer also said that accused showed investor articles published in an international magazine which claimed that one member from royal family is their partner.
The scammers were operating from an office in Delhi. After the start of police bust, nearly 70 employees fled the organization. Currently, through investigation is trying to identify the strands related to the scam.
This kind of incidents puts the cryptocurrency in a bad light and fuels the negative stigma associated with the industry. And as many organizations are contesting against the Reserve Bank of India’s decision to ban all financial institution from transacting with cryptocurrency related business in the Supreme Court of India, the legal battle also gets affected.