Bitcoin fraud in India has become a major concern for the government authorities as there are no defined regulations to deal with it. The cryptocurrency craze that attracted a huge number of investors in the trade last year is now coming out with its negative impact. Bitcoin gatecrashed the market in December last year when it was trending at an all-time high value. It was then the crypto operators and firms started looping the money channels and duped their clients.
According to the Times of India, it is stated that BitConnect, a cryptocurrency firm began offering an investment plan which offered a daily interest of 1 percent on Bitcoin and also doubles the amount within 100 days. The Bitcoin fraud reached new heights with this scam which is extremely hard to believe but still roped in a huge number of investors into their schemes. Despite being too hard to be true many high-end customers from Gujarat invested their money in it only to lose it within a few months.
Fraud Effects & Implications
BitConnect winded up their business suddenly and went off with a whopping amount of Rs 22,000 crore of their money in Bitcoin. It is also mentioned that many of the clients invested the money after the demonetization was announced in 2016 and there was no way to deal with the banned currency of Rs 1000 and Rs 500.
Sunny Vaghela, Chief Technical Officer of an Ahmedabad-based IT firm stated that all the transactions made through BitConnect were anonymous and required no proof. In addition to this, it can be operated from anywhere across the globe which makes it makes the monitoring impossible. Certainly, this is the reason why the government has taken extreme steps to deal with crypto trade and curb Bitcoin fraud. There ban on crypto trade will remain for some time as there are no provisions and regulations to deal with it.
The post Investors In India Lost Whooping Amount In Bitcoin Fraud appeared first on OWLT Market.
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