Per a report by Times of India, the Criminal Investigation Department (CID) of India arrested Dhiraj Patel, Ashiq Shaikh, Vijay Prajapati and Kamruddin Syed the alleged creators of the cryptocurrency KBC Coin.
According to the report, the CID argues that KBC is a Ponzi Scheme. KBC reportedly launched 6 months ago, and its price has not moved since then. KBC coins were reportedly issued at 10 paisas a piece, with the promise that they would skyrocket in value to 10 rupees in a short time.
According to a CID member, an individual named Baljeetsingh Lashkariya promoted KBC via a pyramid scheme, saying that the “first investor in the chain would get an incentive from the last circle of investors. This offer played a major role in bringing more investors to the company.”
Lashkariya and another promoter, Mohan Patel, are reportedly missing.
Remember that Indian legislators have recently proposed a bill that would punish crypto enthusiasts in the country with up to 10 years in jail for violating the country’s anti-crypto laws.