Police Raids Cryptocurrency Mining Farm in India, Seize Over 100 Devices
Authorities of the Delhi Cyber Cell unit has raided a cryptocurrency mining unit in Dehradun, a city close to the country’s capital, seizing hundreds of high-powered computer processors, graphics cards and servers.
The 4,000 sq ft complex in Dehradun employed about 100 mining rigs minting Ethereum, Times of India reported. The police led the raid after the unit came under the radar for an alleged cheating and fraud case.
According to the authorities, the owners of the rig were also involved in a Bitcoin Ponzi scheme, using their website ‘bits2btc.com’ to defraud people of over Rs 100 crore (approx. US $14.9 million). The owners of the farm, Kamal Singh, a Delhi University (DU) graduate, and Vijay Kumar, an engineer, were arrested on April 25.
While interrogating Singh and Kumar, the police discovered that they had invested the stolen amount in cryptocurrency miners. The accused had not only operated the scam website but had developed their own digital currency— HBX and Mcap. They also ran another website, gainbitcoin.com.
Both websites are now inaccessible as their domain names have expired.
As per the police report, the scammers has made about Rs 70 lakh (approx. US $104,000) from the unit in the past three months by selling cryptocurrency. Authorities are still investigating whether more such mining farms was established by the scammers. A local working with the gang has been arrested, while another associate by the name SS Alagh is still at large.
Cryptocurrency scam and theft has been on the rise in India and many parts of Asia. The most recent case was reported last month as the Indian Enforcement Directorate registered an enforcement case investigation report (ECIR) against Amit Bharadwaj, a bitcoin entrepreneur who duped thousands of Indians worth over $300 million.
In the same Month, ten police officers were indicted by the Crime Investigation Department in the Indian state of Gujurat for allegedly abducting and extorting over 200 bitcoins from a local businessman.
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