Cheat who robbed lakhs by offering fake cryptocurrency nabbed in Rithala

NEW DELHI: Multilevel marketing is now being exploited by criminals into fooling people, promising of making them millionaires within no time. The latest among these marketing techniques is that of luring people with cryptocurrency – which has gained prominence after the rise of Bitcoin.

Unearthing a similar racket, wherein a conman used a fake crytocurrency 'Kashhcoin', the Crime Branch Delhi Police on Wednesday arrested a man from north west Delhi's Rithala area.

Police said on Thursday that the accused Narender alias Sonu and his gang had duped several people of lakhs of rupees.

As per Reserve Bank of India (RBI) guidelines, virtual cryptocurrencies of any kind are not legalised in India.

According to police sources, the accused – who is just 12th passout – had initially tried his luck in property dealing, later shifting to multi level marketing in 2011.

In November 2016, he came in contact with other criminals, who launched the fake cryptocurrency Kashhcoin in Dece. Narender then used his contacts to extend this business and cheated a large number of people.

Narender and his associated launched Kasshcoin in December 2016, and went so far as to organise lavish seminars at different places – such as Nepal, Mumbai, Gujarat, Chandigarh, Raipur and Nagpur – to promote and legitimise their fake cryptocurrency.

Eventually, they lured in several people to invest in this, claiming to return high profits saying that the rate of the coin will cross the value of even Bitcoin.

"The complainant was cheated to the tune of Rs 13.90 lakh by the gang of cheats, who lured him into investing the newly launched Kashhcoin. The said cryptocurrency was initially launched at a price of Rs 3.5 per coin, with a promise of high profit making for its buyers. But presently, these coins are of no use," said Joint Commissioner of Police (Crime) Alok Kumar.

The Crime Branch systematically traced these cheats and conducted raids in Maharashtra, Rajasthan and Uttar Pradesh.

On Wednesday, the team ultimately was able to nab Narender from Rithala. His other associates are still at large and cops are searching for them.