A 36-year-old man from Kerala was arrested on charges of fraud: he invited the victims to invest in the fake crypto-currency „Morris Coin“.
The district police arrested a 36-year-old man from the Malappuram district, in the Indian state of Kerala, on charges of having plotted a crypto-currency scam.
Nishad was charged under the Prize Chits and Money Circulation Schemes (Banning) Act by District Police Chief U Abdul Karim.
A team led by police inspector P Vishnu seized several documents in Nishad’s home, claiming that the perpetrator had tricked thousands of Indian citizens out of hundreds of thousands of dollars.
Nishad, CEO of Long Rich Technologies, a startup based in Bengaluru, allegedly pushed the victims to invest in the „Morris Coin“ crypto currency.
According to the authorities, investors were promised a daily return of 270 rupees (about $3.60) for 300 days if they deposited a minimum amount of 15,000 rupees ($200) in Morris Coin.
The scam deceived investors by suggesting that they could trade Morris Bitcoin Trend App in rupees after the lock-up period. In addition, Nishad promised added benefits to investors who invited other people to deposit funds into the scheme.
The police stated that Morris Coin was not listed on the exchange, making it impossible to trade it. In addition, the company has no registered office.
The Morris Coin ICO website also does not present information about team members or developers, nor does it offer explanations about the function of the project. Nevertheless, Nishad has stated that Morris Coin was operating within the law.
The police will contact investors in Morris Coin to register statements and further investigate the case.