After a cryptocurrency scam which targeted over 7,000 people was exposed, the culprit first fled to Dubai, with plans to afterward start a new cryptocurrency mining operation in Georgia with the stolen funds.
The 45-year-old Kamal Singh was apprehended by Delhi Police from IGI Airport on April 25 after coming back from Dubai. Singh and his brother-in-law Vijay Kumar, a computer engineer, were both arrested for swindling clients out of sums worth of Rs 100 crore. The brothers were accused of attracting people in a Ponzi scheme in which they were told they would make earnings in Bitcoins on their website.
“The Cyber Cell has filed a chargesheet against Singh and Vijay in a Delhi court, and police are conducting raids to nab their associates,” stated a senior officer.
“Singh, after graduating in 1991, had started working with a private MNC, but he later opened a real estate business in Bhikaji Cama Place in 2013. He faced losses after property rates went down after which he started looking for a new business. That’s when he met one Sohail, who suggested that he should invest in bitcoin, blockchain, and cryptocurrency,” read the police report.
According to the police, Sohail told Singh that he was employed by Surender Singh Alaghh and Amit Bhardwaj, a Ponzi scheme expert that was accused of scamming thousands by promising unrealistic returns on investments in Bitcoins.
“After gaining some experience with Bhardwaj, Singh studied cryptocurrency and shared his plan with Vijay. The duo started their own cryptocurrency scheme and roped in Sohail and Alaghh. They launched their website and hired a Gurgaon-based company for Rs 20 lakh,” police said.
“The company prepared a website and a cryptocurrency wallet for them. At their office, Vijay looked after IT and admin work while Sohail and Alaghh brought investors by promising them 12% returns. Within some months, they roped in 7,200 investors,” said the authorities.
After some of his investors made complaints against him and his business, he got on the first plane to Dubai. But the authorities intercepted and apprehended him when he returned to India to meet up with his relatives.