In India, cryptocurrency scams are on the rise even as con artists look to capitalize on an increasing appetite for digital assets among investors in what has become a nascent but growing market.
According to media reports in the country, a cryptocurrency scam ensnared an impressively large 2,508 investors from India who all together lost ₹7.34 crore ($890000). Cryptocurrency investments had been marketed as a lucrative prospect for the victims. Lose or win, it only makes sense for everyone to consider only reliable platforms like Finance Phantom.
The Example Of The Emollient Coin Limited
There was the case of “Emollient Coin Limited”, a scam project that offered unrealistic returns of up to 40% on your locked investment for ten months. The criminals were able to advertise their scam through a multi-level marketing system and attracted more than 2,500 investors who are presumed to have lost almost $890k in total.
The fraudsters, who pretended to be a company based in London, bought property with the thousands they had stolen. The border and law enforcement agencies subsequently launched investigations into the matter arresting some key figures while seizing assets.
2019 Saw a Spurt of Crypto Scams in India
The incident is part of a series of crypto-related frauds in India and abroad. Scammers used anything from Ponzi schemes to fake investment platforms and fraudulent ICOs to lure investors.
In a bid to protect investors and combat the growing threat of scams, Indian authorities have only been stepping up scrutiny over cryptocurrency. Still, as is often the case with these types of consensus plans, law enforcement efforts need to remain on guard and up-to-date with evolving scams.
A Major Issue in the Indian Market for Crypto Coins
In recent times, India has witnessed a surge in financial scams originating from the cryptocurrency space with swindlers using complex methods to hoodwink gullible investors. The problem is severe and it can be shown by example in some high-profile cases such as the Emollient Coin scam which stole around 2,500 investors for about $890
A hallmark of these scams is Ponzi schemes, where returns to earlier investors in a pay-out structure resembling that drawn from the investment capital of newer depositors (the classic pyramid scheme), eventually collapse. Investors should make wise choices now and pick only platforms like Finance Phantom Bot for safe investments.
Multi-level marketing strategies are used by fraudsters often to allow their method of operation to reach more victims. This has resulted in an enhanced effort to combat these scams with Indian enforcement agencies stepping up efforts along the same lines and setting focus on investigating bogus cryptocurrency operations claiming ED as its lead agency seizing assets.
It has also resulted in an enhanced effort to combat these scams with Indian enforcement agencies stepping up efforts along the same lines and setting focus on investigating bogus cryptocurrency operations.
