CHANDIGARH: In a well-coordinated operation against cryptocurrency fraud, Haryana police arrested four fraudsters, including the mastermind who defrauded people with Bitcoin transactions on behalf of online businesses.
Manoj Yadava, DGP Haryana, said Mastermind and his staff used the name Binance, a multinational cryptocurrency exchange based in China, to commit fraud with the intent of defrauding gullible people on the pretext of offering them huge amounts of returns when investing money in Bitcoin business online.
He said the problem came to light when a Pravesh, a resident of Sector 23, Sonipat, filed a complaint with police that he had been betrayed by Harinder Chahal, a resident of Madha village near Hansi.
As a result of his complaint, a case was registered in the Cyber ​​Police Station, Panchkula, in accordance with the relevant sections of the IPC and IT law. The police initiated the investigation with the help of cyber experts and it turned out that the accused mastermind was not alone in this fraud; in fact, there are several others who have been entrusted with the task of getting gullible people to invest in Bitcoin with the promise of huge returns. In the ongoing investigation, four defendants and their masterminds have already been arrested.
The DGP said that in the course of the investigation it was found that a man named John McAfee was publicly questioning Binance on Twitter with a possible allegation of a hack. Binance responded to John McAfee the same day with their official Twitter handle, denying any possibility of hack, and also made their “Bitcoin wallet address” public for everyone to see and review.
The arrested mastermind has taken advantage of this by fraudulently creating a Facebook account on behalf of Vikas Kumar and copying the official wallet address of the aforementioned Binance cryptocurrency exchange. On October 1, 2019, the Bitcoin inventory of the wallet in question was 1871 Bitcoins, which was around Rs 1.09.64.06.000. On October 1, 2019, he passed this blockchain address on to the complainant Pravesh Kumar via Facebook Messenger and WhatsApp Messenger.
Mastermind Harinder Chahal, also known as Sonu Chahal, deceived complainant Pravesh Kumar of 15.50,000 rupees by fraudulently showing bitcoins in his wallet, which in fact belonged to the Binance cryptocurrency exchange. The complainant believed in the defendant because at the time of the incident in 1871 there were bitcoins in the wallet (which belonged to Binance and not Harinder Chahal) and was therefore defrauded of his money.
In the course of the investigation, it was also revealed that Harinder Chahal was in fact found in possession of many cryptocurrency wallets, but none of them had real bitcoins or any form of cryptocurrency. The wallets contained non-dispensable (dummy) bitcoins that were fraudulently used to trick the victims into believing that the defendant was in possession of bitcoins that in reality did not exist.