- Delhi Police initiates cheating case against cryptocurrency investment company following bank fraud allegations via mobile app.
- Company denies involvement, citing a fake website scam and emphasizes the challenge of fraudulent websites in fintech.
- Complainants report coercion to pay additional funds for cryptocurrency withdrawals, raising concerns over unusual tax demands.
In a recent turn of events, the Delhi Police has initiated a cheating case against a cryptocurrency investment company following numerous complaints from users alleging bank fraud through the firm’s mobile application. This revelation surfaced on Tuesday as police officials disclosed an ongoing inquiry, with plans to dispatch a notice to the company for a thorough investigation of the allegations.
Company Denies Involvement, Cites Fake Website Scam
Contrary to the accusations, a spokesperson for the company asserted that the incident is unrelated to their app or website, labeling it as a case of a fake website scam. Highlighting a prevalent challenge faced by various fintech players and financial apps, including crypto apps, the spokesperson emphasized the existence of several fraudulent websites mimicking legitimate financial applications to deceive users.
The company has taken proactive measures, swiftly reporting these threats to CERT (Computer Emergency Response Team). They underscored their unwavering commitment to prioritizing the safety and security of users’ funds. The spokesperson announced an intensified effort to educate users across multiple channels about this critical issue. Despite the disconcerting nature of such incidents, the company stressed the paramount importance of vigilance, promising to cooperate with consumers and regulatory authorities.
Cyber Cell Sources and Complaints
Sources within the Cyber Cell revealed that complainants across Delhi reported being coerced into paying additional funds when attempting to withdraw their cryptocurrency investments online. The police source disclosed that three to four complaints from November last year have been consolidated for a comprehensive investigation.
One complainant, a 36-year-old businessman from North Delhi, recounted investing approximately Rs 1.40 lakh last year. Despite making timely payments and accruing gains, he encountered obstacles when attempting to withdraw funds. Allegedly, the app prompted him to submit additional taxes, demanding an extra Rs 40,000 for a refund, a practice not stipulated in government rules.
Unusual Tax Demands Raise Concerns
Government regulations prescribe additional tax (capital gains) ranging from 20-30% on withdrawals, varying across platforms and withdrawn amounts. However, the rules do not endorse the practice of demanding extra money for the refund of previous investments. Another complainant, a 24-year-old engineer from Chattarpur, claimed to have invested close to Rs 14 lakh but faced hurdles in withdrawing the amount.
Expressing concerns over what he deemed internet banking fraud, the engineer detailed the company’s demand for an additional Rs 4.65 lakh, purportedly for tax deduction. The company promised to refund Rs 4.18 lakh along with the principal amount, further raising suspicions of fraudulent practices.
Legal Actions Unfold
The FIR (First Information Report) revealed that an SHO-level officer conducted an inquiry, determining a “cognizable” offense. Senior officers granted necessary permissions for case registration, officially filing charges under sections of cheating. The police are meticulously examining the allegations, scrutinizing online rules related to crypto investments for further verification.
Conclusion
As the investigation unfolds, senior officers plan to engage with victims to ascertain if fraudulent activities have indeed transpired. The police, in their official statement, affirmed their commitment to upholding the law and ensuring justice in the face of potential cryptocurrency fraud. The situation remains fluid as authorities delve deeper into the intricacies of the case. Stay tuned for updates on this evolving saga in the realm of cryptocurrency investments.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
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