Ethereum Mining Unit Raided in Dehradun, India
The Delhi Police Cyber Cell has raided a 4,000 sq ft complex in Dehradun which was being used to mine the cryptocurrency Ethereum. They have captured 100 Ethereum rigs having high-powered computer processors, along with 500 servers and graphics cards.
Kamal Singh and Vijay Kumar were running cryptocurrency-based MLM schemes. Additional DCP, Cyber Cell-Delhi Police, KPS Malhotra, who is responsible for handling the case said:
“They were running websites like bits2btc.com and gainbitcoin.com.”
The police had arrested the convicts 14 days ago and this was just a raid on their mining complex. For those wondering whether the websites are still running or not—they are defunct.
KPS said that the convicts had cheated a little less than 15 million USD (100 Crore INR)—they made a few payouts. He also said that the charge sheet would be filled in the next 40 days.
It wasn’t until Vijay Kumar registered a complaint against SS Alagh (the third co-founder) in a police station that the police nabbed them.
Rupam Bhatia, a victim of their scam, started a petition on change.org demanding the arrest of Kamal Singh. Here’s what the petition said:
I Met Kamal Singh Through A Close Friend in July 2017, at His office – HABITEX TECHNOLOGIES PRIVATE LIMITED , 306, Ansal chambers-2, Bikajikama place, new delhi, we had a conversation for about half an hour, where he explained little bit about his bitcoin mining farms in belfast, and how he is creating more bitcoins, and about his personal life ,that he is a very spiritual person, and he is very much into meditations and all, so i got a little bit interested with working and investing in him, as he said he is inclined towards meditations and was a spiritual person and wont cheat in any way, and he claimed he is having big properties and townships worth 200 crores near delhi, and showed me some online documents , and on 31st july i invested my 0.1 bitcoin and he told that my contract was for 18 months , and he will give payout of 12% every month through bitcoin, and now he said to invite more people to him so that they can also invest with his company and earn 12% return every month for 18 months,, i invited few of my friends and relatives and they started investing , but no where he mentioned about what returns he will give, it was all verbal , so me and my friends started asking why you don’t mention the return in you invoice, he said he cannot write it as there will be some legal issues ,, mean while my team started growing, and he gave me 1st payout in sep , and that was the first and last payout i ever received , its been almost 9 months we have not received any payouts or return on investment ,and we were requesting for our payouts , but he gives some excuse every time we ask for our payouts, then he said it will be easy to give payouts in his new wallet which he made named Bitscoin bank , and we started receiving payouts in this new wallet, but later we all realised that it was another scam, it was only a number game , no one could transfer that payout to other wallet .. we all have been asking and requesting him for our ROI and payouts, but now he stopped picking up our calls, or he keeps his phones switched off, now as heard he has left India and is in Dubai , with all the money,, and does not care about the investors and their money.. HE ALONG WITH HIS WIFE”S BROTHER ( vijay kumar) SCAMMED A LOT OF INVESTORS.. Both Are now absconding..
There are a lot of scams in the crypto world which one must be wary of. Follow CoinFrenzy‘s official Instagram page and Telegram channel to stay updated on whatever is happening in the world of cryptocurrencies and the blockchain technology!