The prompted of a cryptocurrency scheme that folded up in January this year was arrested at the New Delhi airport as he travels in from Dubai. Divyesh Darji was the head of the Indian branch of Bitconnect that caused many people to lose their investment after it folded up. The case of scam and Ponzi scheme has become rampant in the crypto ecosystem, which is still a deadly menace to its growth.
The Arrest of Mr. Divyesh Darji Head of India Bitconnect Branch
Mr. Divyesh Darji, the head of the Indian Bitconnect arm, was arrested as he returned to India from Dubai. Darji heads the Indian branch of the cryptocurrency Ponzi scheme that saw many lose their life saving when the company closed down in January.
He was involved in promoting the Ponzi scheme in India with enticing promises made to investors. His arrest was aided through the Indian immigration hinting the local police of his arrival as he was already declared wanted since the closure of the firm in January.
Bitconnect project and Its Scam
Bitconnect (BCC) was an open-source cryptocurrency project which was described as a high-yield investment program. It started in 2016 and launched its Bitconnect coin in 2017. The firm was registered in the United Kingdom but essentially operated from the Burj Khalifa tower in Dubai. Seminars were also held in different countries on the project.
High returns of 60% profit were promised to its investors which made it see a large number of investors. Bitconnect released its 2.80 crore coins, out of which 1.80 crore coins were sold to investors.
The Bubble Of the Scam
Many loosed their life savings to the scheme in January. However, the impact of the loss is still reigning as investors kidnapped other promoters of the project in India to recover their loss.
Shailesh Bhatt, who invested Rs 1.80 crore, kidnapped Dhaval Mavani and Piyush Savaliya both related to the bitconnect to extort 2,019 bitcoins, 11,000 Litecoins, and Rs 14.50 crore cash from them. This created a spiral of investigation with the police.
Meanwhile, The rising wave of cryptocurrency scams and Ponzi scheme continues to damage the image of digital currencies. Related cases have been reported severally this year. The cryptocurrency community needs to tackle fraud as it is becoming rampant. Then the community needs to be wary of projects such as Bitconnect in the future.