Police claim that at least 1 lakh people were victims of the cryptocurrency fraud...
Digital Desk: Over a thousand police personnel fell victim to a fake local cryptocurrency scam created by fraudsters in Himachal's Mandi district, an official stated on Thursday.
According to the Special Investigation Team (SIT) formed to look into the scam, the majority of police officers who invested in the fake cryptocurrency were duped of crores of rupees, but some of them made huge earnings, became promoters of the scheme, and attracted more investors.
Police claim that at least 1 lakh people were victims of the cryptocurrency fraud and that 2.5 lakh IDs, including multiple IDs for the same person, were found.
The scammers created two cryptocurrencies—"Korvio Coin" (or KRO) and "DGT Coin"—and fake websites with manipulated pricing in an effort to attract investors.
The original investors were seduced by the promise of quick, large returns. They also established a network of financiers who, within their networks, grew the chain even further.
For quick returns, police officers, teachers, and others joined the scam.
Even though the vast majority of the police personnel engaged lost money, their support of the program built investor confidence and gave the investment plan credibility.
On condition of anonymity, a police official told PTI on Thursday that certain police officers involved in the cryptocurrency scam chose the voluntary retirement plan (VRS) and thereafter became its promoters.
Cryptocurrency is a type of digital money that operates as a means of exchange through a blockchain-based computer network and is not supported or maintained by any central authority, such as a bank or government.
The fraud began in 2018, with the bulk of victims being from the districts of Mandi, Hamirpur, and Kangra. A single person has occasionally recruited up to 1,000 people.
The authorities had earlier said that the accused utilized a combination of false information, trickery, and threats to keep control over their scam and continue extorting money from gullible investors by manipulating the cryptocurrency prices, which resulted in significant financial losses for the victims.
The cryptocurrency scammers solicited consumers with an investment scheme involving a regional cryptocurrency called "Korvio Coin" or KRO coins and demanded an initial activation fee to get their accounts activated. It used three to four different types of cryptocurrencies.
To list their coins and influence their pricing, the scammers created fake websites. They later introduced a brand-new coin known as "DGT Coin." The price of these coins was purposefully dropped after a sufficient number of people had bought them at a higher price, leaving the investors with enormous losses.
In addition to cryptocurrencies, the investigation uncovered other deposit plans, according to the police, like a 10% monthly return on a ₹90,000 deposit.
The public has been advised by the police to exercise caution when investing in any plan that offers annual returns of more than 12%.
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