Thursday, 28 July 2016

Kingpin of ‘Crypto mining scam’ arrested

Here is yet another multilevel marketing scam which shocked the authorities and the police alike. The crooks started 3Gcoin with the promise of easy and quick money. Finally the kingpin of the scam was arrested.
The kingpin involved in the scam of ‘3gcoin,’ a multi-level marketing company involved in crypto mining (digital currency), was arrested from Bengaluru and produced in a city Court on July 27. A case was registered under various provisions of IPC and IT Act and the police took up investigation.
According to the Cyber Crime police of Cyberabad, the accused, B M Jagadeesha, cheated people to the tune of Rs 2.89 crore during the last two years. Jagadeesha is the head of operations for the company which is registered in Europe lured gullible IT employees interested in crypto mining. They promised to provide huge profits upon investment. The modus operandi involved active involvement of 500 agents, working on commission basis. The person who introduced the members will get 20 per cent of 30 Euros as commission. The accused promised them that the introducer would continuously get the commission on each introduction. He has collected Rs 2,89,12,500 from one group most of which was distributed as commission to agents. 
At the time of launching the company, they have declared that the value of each Crypto Coin was 30 Euros. They have projected the investors that if they take one crypto coin by investing 30 Euros they would get 128 crypto coins at the end of the second year of investment.

During the investigation it also came to light that there are several other similar websites such as wowcoin, onecoin, richcoin, litcoin, which are involved in similar businesses online. “Hence, it is advised to study about the operations of such companies before investing their hard earned money,” said Md Riyazuddin, Inspector, Cyber Crimes (Cyberabad East), who led the team to Bengaluru.
Corporate Frauds Watch appeals to the people from all over the world not to fall prey to the dubious promises of multilevel marketing companies like Amway. Herbalife, Tupperware which are followed by the crooks like 3gcoin and others.