Indian Ponzi Scheme-Funded Cryptocurrency Mine Raided by Police

Indian police have raided a cryptocurrency mining operation whose establishment was funded by a nearly $15 million USD ponzi scheme. Police seized hundreds of mining cards.

Ponzi-Financed Ethereum Mine Raided in India

Local reports have claimed that police found 'over 100' Ethereum mining rigs comprised of 'high-powered computer processors, 500 graphics cards, and servers.' The mine's owners reportedly 'told curious neighbors that [the mine] was a computer processor unit with servers of a big company.'

Profits Used to Diversify Cryptocurrency Activities

The accused had rented the property on which the mine was hosted since September 2017. Eight employees were hired to maintain the mining hardware. Police estimate that the cryptocurrency generated Rs 70 lakh (almost $105,000 USD) after three months of operating.

Third Co-Founder Still at Large

Arresting officers Jagdish and Yadav have stated that a rift was identified between Mr. Kumar and Mr. Singh, and Mr. Alagh which had escalated to the point where Mr. Kumar lodged a police complaint alleging kidnapping on the part of Mr. Alagh and his associates.

'Kumar had lodged a complaint with the local police alleging that Alagh and his associates had kidnapped him,' an officer said, adding that the complaint had ultimately assisted authorities in making the arrests.

A local employee of the mine has also been taken into custody. Police are currently investigating whether more cryptocurrency mining operations were established by the group.

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The post Indian Ponzi Scheme-Funded Cryptocurrency Mine Raided by Police appeared first on Bitcoin News.


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