The Economic Offences Wing (EOW) of Nagpur Police has busted an alleged network that lured thousands of investors across multiple States with promises of extraordinary returns through ‘Free Coin’ and ‘Merchant Coin’ digital assets. The investigation of this cryptocurrency-linked investment fraud has led to the arrest of city-based agent Mihul Shivaji Dixit and Rakesh Kumar Mohanlal Garg alias Rakesh Agrawal, director of a Punjab-based CLBP System Private Limited Collection Company, for operating and promoting the scheme. The action took place on the basis of the complaint registered by complainant Reema Ranjan Ghosh a resident of Ram Nagar at Pachpaoli Police Station.

 

While sharing details about the crackdown at a press conference, on Thursday, Dr Ravinder Kumar Singal, Commissioner of Police, said, “The accused persuaded investors to put money into a scheme called Future Digital Assets (FDA) by claiming that investments would generate substantial profit within 100 days. Investors were also promised massive gains through digital tokens branded as Free Coin and Merchant Coin.” As per the information, the fraudsters lured the investors with the help of company website, youtube videos, and Telegram meetings. The website displayed virtual earnings and investment growth which attracted investors. The scheme also allegedly operated on a chain or referral model, where investors were encouraged to recruit new members with promises of earning lakhs of rupees every month. On the basis of the claims, the complainant and several others invested money in the project. However, despite repeated assurances, investors received no actual returns.

 

During the investigation, police found that at least 25 investors connected to the complainant had collectively been cheated of around Rs 5.40 lakh. While further investigation, the police unearthed a deeper conspiracy and far large operations. As per EOW, more than 31,117 investors from Maharashtra and other states had reportedly invested money through the website. The police also discovered that the company’s digital ecosystem was linked to more than 10.24 lakh users, including around 30,000 users from Nagpur alone. EOW seized four laptops costing around Rs 99,000; two mobile phones; sim cards costing around Rs 35,000 and Rs 450 cash from the accused. Police have also frozen bank accounts and fixed deposits linked to the accused, securing approximately Rs 1.72 crore as part of the ongoing investigation. The police team arrested Mihul Dixit from Nagpur while Rakesh Garg was apprehended from Chandigarh. Both accused have been booked under relevant provisions relating to cheating and financial fraud. The EOW estimate that 10.24 lakh investors may have invested at least Rs 500 crores through the network in this fraud. The police is conducting further investigation to find out more investors in the network.