Indian Crypto Ponzi Scheme Attracted Muslims With Halal Investment
An Indian crypto Ponzi scheme hiding under the umbrella of an investment company has crumbled after the Reserve Bank of India declared cryptocurrency an “illegal tender”.
According to the Deccan Chronicle, Ambidant Marketing and Investment Company, run by father and son – Syed Fareed and Syed Afaq Ahmed, used promises of Halal investments spiced with misused Islamic theology scholars to position itself as a Sharia-compliant investment program for Muslim investors.
According to reports, the company used the disguise of Halal businesses and investments to attract Muslim investors who were then promised mouth watering monthly returns of as much as 50 percent per lakh Rupees (approximately $275). The company also allegedly used Ulemas to market its activities as Halal.
As more investors trooped into the ponzi scheme, payout sizes declined first to 25 percent, and then to 11 percent before finally paying out 9 percent in January 2018, which was its last payout.
Following the RBI’s declaration of bitcoin as “illegal tender”, India’s Enforcement Directorate which oversees financial law enforcement turned its attention to Ambidant’s activities.
India’s Enforcement Directorate speaking about its findings in a statement said:
“During the investigation, it came to the fore that the scheme run by the company is surely a potential Ponzi scheme. In view of the above, ED has written to the RBI (Reserve Bank of India) to have another look into the matter and protect the interest of the investors/depositors at large who are being duped in the name of Islamic banking/halal investment.”