Authorities in India have unearthed another cryptocurrency scam that seems to be tied up to the alleged chief of BitConnect Asia, Divyesh Darji. This, according to a report by The Next Web, June 4, 2019.
Another Day, Another BitConnect Scam in India
It’s no surprise that countries with unclear regulations are most often the ones that transform into hotbeds for cryptocurrency-related scams and fraudulent schemes that defraud innocent customers.
In India, the local police and Crime Investigation Department (CID) recently dug up a Ponzi scheme which offered investors returns as high as five thousand percent on the principal amount.
Per sources close to the matter, the said scheme was orchestrated by veteran crypto conman Divyesh Darji who promised investors astronomical returns for investing in “Regal Coin.” People who had invested in the project were promised returns that would eclipse those of holding bitcoin (BTC) for the same period.
CID officials said that Darji introduced the fraudulent scheme to investors in September 2017. At the time, he sold the benefits of buying Regal Coin by saying that investors could turn $2 into $100 in a short period. A CID official told The Times of India:
“Darji had told his investors that they needed to stay invested just for 99 days. He also promised to pay them returns on their principal according to profits on robotic trading, besides 1% to 1.6% referral bonuses every 11 days.”
The Scam Surfaces
The scam came to light after Vishal Savalia, a resident of Surat, Gujarat, contacted the CID stating that he had lost close to $25,000 in the Regal Coin scam. Two more investors, Rajesh Mania and Kirit Parmar, seem to have succumbed to the same vice of Darji and his associates.
The company behind the scam pumped Regal Coin to $100 before quickly closing shop and running away with approximately $65,000, the report adds. CID estimates that the total amount involved in the scam could be significantly higher than what the current circumstances suggest.
A resident of Gujarat, India, Darji is currently facing trial in a $2.5 billion cryptocurrency scam.
Notably, in May 2019, the Gujarat high court released the former BitConnect Asia chief on bail who has since been on the lam.