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Saturday, July 21, 2018
Govt of Maharashtra to Take steps Against Bitcoin [BTC] Scams in India.
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Govt of Maharashtra to Take steps Against Bitcoin [BTC] Scams in India.

The universe of cryptocurrency is loaded with allegations and events of scams and extortion. To counter this to an extent, the Government of Maharashtra in India has requested a special investigation team to investigate instances of Bitcoin [BTC] fraud in the state.

The Additional Director General of the Economic Offenses Wing assembled the team under him. The government went on to issue lookout notices against organisations that are said to be involved in deceitful procedures.

This came after cases of Bitcoin extortion were reported in the cities of Thane, Yavatmal, Pune and Kolhapur. The joined pull of the organizations comes close to 200 million INR, which comes around to 2.9 million USD. The police have gotten back 10 million INR out of the total amount, which is close to 140,000 USD.

There were three organizations associated with the scam, with the guiltiest party being the organization called Gain Bitcoin. The organization made away with around 170 million INR in the Yavatmal and Pune areas, with 3 of the charged already being arrested. Other organizations include Zipcoin Cryptocurrency and Flintstone Technology, who carried off 20 million INR and 17 million INR separately.

The guilty parties have been enlisted under the Maharashtra Protection of Interests of Depositors Act, Prize Chits and Money Circulation [Banning] Act, and Information Technology Act.

Deepak Kesarkar, Minister of State for Home expressed that the government would look for help if necessary from the Enforcement Directorate. This was part of his statement amid the current monsoon session of the state legislature.

Kesarkar said:

“No timeframe has been given to the SIT to complete the probe. Each case is at a different stage of investigation and will take its own time.”

The matter came to notice after Hemant Takle,  a legislator of National Congress Party raised an attention notice. A reply issued by the government states:

“[The] RBI has from time to time issued circulars cautioning the general public against investing in cryptocurrencies and similar notional currencies not issued by RBI.”

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