Five men were recently arrested in India by the police of Hyderabad because of their connection with CoinX Trading company which turned out to be a scam.
Some of you may not be familiar with the CoinX Trading, so let me introduce you a little. On their website, which is offline since August 6, CoinX Trading claimed the following: guaranteed profit, easy to deposit and instant withdrawal. Sounds suspicious, right? Well, you haven’t even seen their trade plans yet.
Crypto Ponzi scheme
As you would have guessed from the first image, it turned out that the trade plans were, in fact, nothing less but a Ponzi scheme.
CoinX Trading offered a number of schemes involving cryptocurrencies such as Bitcoin. As is often the case with these schemes, CoinX lured its customers by promising high returns. As we could see in the image above, the company offered several investment plans. From $100 per plan up to $500 000 per plan, promising daily commission from 0,4% up to 1,5%. Thanks to the trust of the investors, in one year of the company’s existence only, around $1.43 million was stolen.
The head of this scheme is Gardesh Ramesh, the founder of CoinX Trading. His accomplices in the scheme are Chandupatla Srinivas, Sudagoni Sathaiah, Kunchala Hari Gopal, and Namalla Venkatesh. All these men including Gardesh are currently held in custody.
To be fair, it is important to mention that the company appeared more legit than other companies in this category. CoinX Trading claimed it launched in 2013 and also claimed to be registered in the United Kingdom and the United States. These claims gave the company a somewhat global look which could help to lure potential victims.
Gardesh Ramesh and his accomplices were arrested by the police of Hyderabad in a raid on GRM Estates. Police have successfully seized several ATMs, cars and cell phones in a total value of $260 000. Four land sale deeds were also seized as these are possibly proceeds of the scam.
According to the police, Gardesh was driven by his desire for easy money, and so the idea of another Crypto Ponzi scheme was born.
Police investigations are still ongoing, so, even more, will be uncovered in the near future.
India and Crypto scams
India is a big country. It is the seventh largest country by area and the second by the number of citizens. So naturally, crypto related scams are present, despite the fact that the country had recently banned crypto related trades.
One of the biggest known frauds involving the popular Bitcoin was a $3 – $12.7 Billion blackmail case.
To name a few “smaller” cases, there was a $300 Million scam by Amit Bhardwaj and a $15 Million crypto mining scam.
Also interesting is a $763 Million BTC scam which led to heated debate between the major political party BJP and the opposition.
As more and more cases of cryptocurrency related scams appear, be careful with your investment. In terms of crypto buy and sell you can always rely on us, your cryptocurrency partner, BITCOIN DATA.