The Crime Investigation Department of India has taken the statement of a distraught Indian businessman extorted 2,000 Bitcoins from the promoters of fraudulent cryptocurrency project Bitconnect for investigating the firm’s working.
As per a report, three men named Dhaval Mavani, Diyash Darji and Satish Kumbhani used to manage Indian business in Gujarat who worked with the project’s promoters abroad and followed up on Indian investors urging them for making an investment in the venture.
The trio promoted Bitconnect as a great option of investment and guaranteed a high return on investment.
Shailesh Bhatt, an investor who had invested in Bitconnect expecting a 1.1 percent daily return, got enraged as the promises turned out to be fake.
He got so furious that he teamed up with eight other people to take their revenge and extorted 2,000 Bitcoins from the promoters of Bitconnect.
Unfortunately, he could not enjoy his wealth for too long as he was picked by CID officials a month later from his residence.
CID officials stated:
“Apart from India, Bitcoin also operates in Indonesia, Vietnam, Hong Kong, Singapore and the US. We have identified a few accounts associated with the transactions and we have informed the banks”
Nikunj’s statements confirm that the firm used a special software that calculated high and low points of bitcoin’s price action and it claimed that the system traded the currency for an average of 1 percent return on a daily basis which meant an annual return of 365 percent.
Reportedly, the company also had investment slabs to further attract investors. For instance, the company claimed to add an extra 0.1 percent to the earning if a person invested between $1,000 and $5,000. The extra incentive kept increasing with each slab, with the largest slab offering 0.25 percent extra returns per day.
Interestingly, CID has said that it shall convert the recovered bitcoins into Indian Rupees and store them with the country’s central bank.