• IIT Kanpur student Shubransh Nayak and his associates have been arrested after a crypto fraud scheme.
• Residents of Naupada area have reported losing money to two crypto companies, Dronx.Biz and BNB Pool.
• Victims were promised 8% daily returns, but faced threats when asking for their money back.
Crypto Scam in India
An Indian student from IIT Kanpur was arrested along with several of his friends after being allegedly involved in a crypto scam. The police report states that the initial complaint amounted to ₹2.5 lakh, however it is believed that the scam could be worth more as more complaints are expected to arise.
Victims Targeted by Crypto Companies
The victims residing in Naupada area have reported having lost money due to the two crypto companies Dronx.Biz and BNB Pool. They were promised 8% returns every day if they chose to invest, but these returns would increase if more people got involved in the scheme. This should’ve been an indicator that crypto returns cannot be guaranteed, making it impossible to assume any funds will be returned once invested into the industry given its volatile and speculative nature.
Threatened When Asking for Money Back
When the victims realized it was a scam they asked for their money back but faced dire consequences instead. Senior Police Inspector Sanjay Dhumal who has been investigating this case said: “We received a letter from complainant Sushil Kangya against two companies named DRONX BIZ and DRONX BNB Pool which are into MLM and [were] involved in a cryptocurrency scam”.
It appears there were fake promotions about these companies claiming they had support from India’s Prime Ministry as well as other government members; however this has not yet been verified or confirmed at this point in time.
Naupada police continue their investigation on this case as they expect more victims to come forward with similar stories of being scammed out of their investments into these fraudulent companies