Crypto Quill

In a major breakthrough, the Himachal Pradesh Police have arrested Milan Garg, one of the masterminds behind a Rs 2,500 crore cryptocurrency scam. The arrest took place at the Netaji Subhash Chandra Bose International Airport in Kolkata as Garg attempted to flee to Bangkok. This scam, which came to light in 2022, has duped thousands of investors and highlights the growing need for stringent regulations in the cryptocurrency market.

The Arrest and Investigation

Milan Garg, a 35-year-old resident of Meerut, Uttar Pradesh, was apprehended on July 18, 2024, while trying to escape to Thailand. Garg, who had previously fled to Dubai, returned to India in June and was planning another escape when he was caught. The Himachal Pradesh Police, led by Deputy Inspector General of Police (DIG) Abhishek Dhullar, have been investigating the case since it was first reported.

The scam involved the creation and marketing of a fake cryptocurrency, which lured investors with promises of high returns. Garg, along with his associates, used sophisticated techniques to manipulate cryptocurrency prices and create false websites. The police have so far arrested 26 people in connection with the scam and have filed charge sheets against 70 individuals.

The investigation revealed that the scammers used a combination of misinformation, deception, and threats to convince investors to part with their money. The victims, who initially hesitated to come forward, eventually reported the fraud, leading to the uncovering of the scam.

Modus Operandi of the Scam

The cryptocurrency scam, which began in 2018, involved the creation of a locally made cryptocurrency known as ‘Korvio Coin’ or KRO coins. The scammers approached potential investors with an investment plan that promised quick and substantial returns. They built a network of investors, including people from various sections of society such as policemen and teachers.

The fraudsters created multiple types of cryptocurrencies and manipulated their prices on false websites to attract more investors. They used high-pressure tactics and threats to keep the investors from withdrawing their money or reporting the scam. The victims only realized the fraud when they did not receive the promised returns.

The Himachal Pradesh Police have received over 300 complaints related to the scam. The police have been working tirelessly to track down all the individuals involved and recover the stolen funds. The arrest of Milan Garg is a significant step towards bringing the perpetrators to justice.

Impact and Future Measures

The Rs 2,500 crore cryptocurrency scam has had a profound impact on the victims and the broader community. Many investors lost their life savings, and the scam has eroded trust in the cryptocurrency market. The incident underscores the need for stronger regulations and oversight to protect investors from similar frauds in the future.

The Himachal Pradesh Police have been praised for their diligent work in uncovering the scam and apprehending the key accused. The police have also emphasized the importance of public awareness and vigilance in preventing such scams. They have urged people to be cautious when investing in cryptocurrencies and to report any suspicious activities to the authorities.

In response to the scam, the police are working on enhancing their cybercrime capabilities and collaborating with other law enforcement agencies to track down the remaining suspects. The case has also prompted calls for stricter regulations and better consumer protection measures in the cryptocurrency market.