Addl DG to investigate Bitcoin fraud

Source: The Hitavada      Date: 11 Jul 2018 09:46:38


Staff Reporter,

Additional Director General of Police (Economic Offence Wing) has been appointed to investigate into the Bitcoin fraud committed by Zip Coin Cryptocurrency. All the cases registered in the State will be transferred to him. A Committee under Additional DG will be formed to deal with the cases, Minister of State for Finance and Planning Deepak Kesarkar informed the Legislative Council on Tuesday.

The issue of a large number of investors being cheated, was raised by Hemant Takle, Dhananjay Munde and others through a call attenion motion. The company had assured 15% per month returns on the invested money. The money collected was invested in other companies and the investors were deprived of the benefit and also their capital money.

Kesarkar stated that Reserve Bank of India, through a notification, has prevented use of any kind of virtual currency. Permission from the Centre is being obtained, as the operations are not restricted to Maharashtra State. He also stated that the properties of the directors, which are in the state will be attached in three months. The money has also been used to purchase properties abroad and cannot be attached.

Offences against six accused under Sections 419, 420, 406, 468, 120(b), 34 of IPC and under MPID have been registered with Shahupuri Police Station, Kolhapur. Charge-sheets have also been filed in the court. Similar offences have also been registered in Nanded, Yavatmal, Pune and Thane. The money laundering case is not restricted to the company, as Zip Coin has invested a large portion of it in other companies.
Replying to a supplementary by Leader of Opposition Dhananjay Munde, Kesarkar said that the investors’ money at today’s rate is difficult to recover. Efforts, however, will be made to recover maximum amount from the accused. Kesarkar also stated that steps to prevent such crimes have also been taken by the State Government.