Another cryptocurrency scam in India has reportedly duped investors of hundreds of thousands of dollars.
The operator of Delhi-based cryptocurrency platform Pluto Exchange is accused of duping 43 investors of more than $272,000.
A local news outlet Millennium Post reported that the Economic Offence Wing of the Delhi Police has launched a probe against the operators of the Pluto Exchange after 43 investors filed a complaint with the EOW.
Bharat Verma, the founder of Pluto Exchange, and others involved in the investment scheme allegedly lured investors by saying they were running crypto trading and cryptocurrency mining operations under the company “F2poolminin.”
Joginder Kumar, one of the 43 investors, claimed that he first met the operators of the exchange in Delhi’s Connaught Place, where they told him about the cryptocurrency scheme that would offer a return of 20–30% each month.
According to a statement published by the Delhi Police, the suspects also promised Kumar an added commission if he brought more people to invest in the scheme.
After not receiving any returns on his investment of over $6,500, Kumar said he met Bharat Verma who explained that the seizure of many of the company’s bank accounts and the plummeting price of Bitcoin (BTC) had forced them to not pay out the returns to the investors.
At present, Pluto Exchange has shifted its offices from India to Dubai, and according to Kumar, the director of the company has collected more than $6.8 million for the cryptocurrency business.
Pluto Exchange did not immediately respond to Cointelegraph’s request for comment.
As Cointelegraph previously reported, there has been a rise in the number of cryptocurrency scams targeting Indian investors. Between 2017 and 2019, Indian investors have lost more than $500 million to cryptocurrency scams operated within the country and abroad.
