Indian Police Raid Cryptocurrency Mining Zone

Indian Police Raids Cryptocurrency Mining Zone

Police in India’s capital, New Delhi has raided a digital coin-mining center and seized several mining cards. The establishment of this mining operation is believed to have been funded by close to $15 million that was obtained from the scandalous Ponzi scheme.

Following Up On The Owners’ Arrest

This raid, which was conducted by Cyber Cell’s unit of the Delhi Police, came just days after some individuals with connections to the establishment were arrested. Those who were arrested are the owners of this 4,000 square foot establishment lying at a place known as Dehradun, New Delhi.

The persons who were arrested were Vijay Kumar and Kamal Singh, who had been earlier accused of accumulating Rs 100 crore through an unauthorized Ponzi scheme that was promoted through bits2btc.com {the amount is translated to close to $14.9 million}.

According to reports published in the country’s local media, the police had seized more than a hundred Ethereum mining rigs. These rigs, according to the reports, were made up of 500 graphics cards, top-speed computer processors, as well as other servers.

It is also reported that the owners of the mine told those around that the establishment was just a computer processor unit that hosted various servers for different large companies.

Where Were the Profits Taken?

As soon as the two owners of the establishment were arrested, police immediately began to interrogate them. The authorities determined, through their interrogations, that the establishment had been fully funded by the scandalous bits2btc Ponzi scheme.

It appeared that the business was thriving well as the two accused had already spread their wings to other places. Courtesy of their fraudulent undertakings, they managed to launch two Cryptocurrencies; Mcap and HBX.

Apart from that, they had also introduced gainbitcoin.com, another Ponzi scheme that was similar to the one that funded their initial project.

The police also identified that the stable has been running since September 2017, in which eight workers were employed to take care of the main hardware used for mining. After three months of operations, it is estimated that the business brought in close to $105,000.

Wanted: Third Founder Yet to be Arrested

Even as the two owners of this mining site are under police surveillance, the third owner is still at large. S.S Alagh, who is the other co-founder of this business is believed to be hiding somewhere to avoid arrest by the local police.

According to information that was given by the two arresting officers; Yadav and Jagdish, there had been a rift between the three co-founders.

There was even an instance where Kumar reported that he had earlier been kidnapped by his partner, Alagh, and his associates. The officers stated that Mr. Kumar helped the police in making the arrest back then.

Apart from the two who are currently in police custody, an employee of the mine has also been arrested. Police believe that the employee who has been arrested can help in leading to the root of this fraudulent activity.

At the moment, the police are trying to ascertain if there are other mining activities that the group established.

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