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Indian State Government Establishes Inquiry Panel to Probe Cryptocurrency Scam

Indian State Government Establishes Inquiry Panel to Probe Cryptocurrency Scam

Maharashtra government in India has taken a decision to initiate a high-level inquiry panel to probe the scam involving cryptocurrencies. The centralized level of inquiry panel would be headed by Prabhat Kumar, an additional director general of Economic Offence. The move assumed significance since there was a spate of frauds deceiving investors by promoting schemes that are similar to that of Ponzi. India has already initiated steps to ban trading in any cryptocurrencies in April, and the Reserve Bank of India’s deadline to commercial banks has also come to an end.

Coordination with Central Agencies

The State government has appeared to have understood the intricacies of the issues involved in probing the scam involving digital currencies, DNA India reported. This was quite evident when the panel was empowered to coordinate with central agencies. This included the Enforcement Directorate to inquire into issues relating to scams. The inquiry panel was initiated since at least four cases were registered against software company proprietor by Pune police. The proprietor faces charges of duping a number of persons who have invested in a scheme meant to invest in bitcoins and other digital currencies.

The proprietor has failed to return the initial amount promised by him apart from sharing profits. Maharashtra is known to be a business center, and most of the investments are routed through the State only through some of them have failed to see the end results. As people expect a quick return for their money, some of the so-called investment advisors took advantage and advised them to invest in schemes related to virtual currencies in the State.

Maharashtra’s Minister of state for home, Deepak Kesarkar, disclosed that the State has already been having enough cases in Kolhapur, Nanded, Pune, and Thane. He pointed out that public was allegedly cheated through digital coins that have demonstrated uncertainty in the current year. While the local police have already registered cases, the panel would be given powers to inquire scams expeditiously. Kumar would be given enough powers to take experts from different fields.

This included banking and finance sectors apart from representatives of district collectors. The minister pointed out the pending cases against the accused, who were facing charges under different sections of forgery, criminal breach of trust, criminal conspiracy, and cheating. This apart, the accused was charged with relevant provisions of the State’s Chit Funds Act, Protection of Interest of Depositors Act and the Information Technology Act.

Online Digital Coin Racket

Following the complaints, the State has cautioned the general public on the risk of investing in digital coins. In June, Thane police have cracked an online virtual currency racket that has allegedly mopped up about Indian currency five billion and promised good returns. A year ago, some people had launched a firm to introduce their own crypto coin known as the Money Trade Coin (MTC).

The promoter of the firm promised high returns. There was a similar case in Nanded where about 8,000 people were cheated by multi-level marketing (MLM) scam. An earlier report suggested that some of the promoters or owners have even threatened investors for seeking a refund of money.

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