Arrest in Multi-Crore Cryptocurrency Fraud Highlights Extensive Scam Network

Amit Jaiswal, a 36-year-old, was arrested in Delhi by the Jharkhand CID for his involvement in a multi-crore cryptocurrency fraud. Jaiswal and his accomplices defrauded 100-150 people of Rs 4-5 crore. The scam involved creating a fake cryptocurrency trading website that showed initial profits but prevented investors from redeeming their gains.

The Jharkhand CID has apprehended a man from Delhi in connection with a multi-crore cryptocurrency fraud case, according to an official statement released on Wednesday.

The suspect, identified as 36-year-old Amit Jaiswal, was arrested in the national capital on Tuesday. He was subsequently brought to Jharkhand on a transit remand and presented before a local court, where he was placed in judicial custody.

In January, another suspect, Shashi Shankar Kumar, was detained in Bihar in relation to the same case. The fraudsters allegedly scammed over 100-150 individuals statewide, accumulating around Rs 4-5 crore, the CID (Criminal Investigation Department) communiqué revealed.

The CID initiated its investigation after a case was filed at the Cyber Crime police station last November. The release stated, 'The case involves a sophisticated group of fraudsters who developed a cryptocurrency trading website. Investors transferred funds through various cryptocurrency exchanges to the blockchain wallet addresses shown on the website. Using AI-based trading, the website initially displayed significant profits to investors. But, investors could not redeem their profit.'

A mobile phone with a SIM card and various blockchain wallet addresses used in the crime were confiscated from the detained individual.

(With inputs from agencies.)