The crime branch of India’s financial capital has busted a company for running a cryptocurrency Ponzi scheme.

The bust came after disgruntled investors alerted government officials of fraudulent activities within the company. The company, The Flintstone group, was set up in 2016 as a real estate company and apparently its employees lured customers into investing in their native cryptocurrency. Through client investments, the company was able to steal hundreds of crores of Indian Rupees (worth tens of millions in U.S. dollars).

The Scam

After luring investors into the company, they were allegedly sold lifestyle Caribbean homes and promised citizenships in African countries.

This was to be a “soon-to-be-legal” cryptocurrency – the MoneyTradeCoin (MTC). For investors, this was a golden opportunity making them early adopters and would be able to make them millions in profit. Investors were promised a high return on their investment in a very short time for investing in the MoneyTradeCoin. According to reports, the payout would be 10 to 20 times of the initial investment over the next 6 months.

A group of businessmen who had invested in the company soon got suspicious of the promised properties when the company missed payout dates. Additionally, company executives failed to give convincing answers to their questions. Soon after, the businessmen filed a complaint, investigations began and would later unravel a multimillion dollar cryptocurrency scam.

The police have now raided the company’s Thane office at Orion Business Park, Ghodbunder Road, arresting two people involved in the fraudulent company. The company’s managing director was not arrested and is believed to have fled the country having been alerted about the raids.

Celebrities And Politicians Involved?

According to a report by one of the officers, several photos of Amit Lakhanpal-Flintstone Group managing director were found with him posing along several celebrities and politicians. Authorities now believe that the directors of the company were working with politicians and celebrities to lure clients.

The company has also been linked with a Dubai based firm Bitcoin Global FZE. The two companies are believed to own the intellectual property of MoneyTradeCoin (MTC).

The Industry Is Still Troubled

This is not the first time the industry has been hit with a multi-million dollar scam with the industry believed to be losing over USD $9 million a day in such activities. Shockingly, reports estimate that the first 2 months of 2018 saw people lose more than USD $1.36 billion. However, security measures continue to be implemented and one can only hope that through improved learning and awareness this trend starts going downwards rather than up.

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