Crypto Quill

In a shocking turn of events, several residents of Mumbai have lost a total of ₹23 lakh in a dubious cryptocurrency scheme based in Dubai. The scheme, which promised high returns on investments in ABLC crypto coins, was endorsed by well-known actors and celebrities, adding a veneer of legitimacy. The Malad police have registered a case against the alleged mastermind, Avinash Gupta, and his associates, who are accused of defrauding numerous investors. This article explores the details of the scam, the involvement of celebrities, and the broader implications for investors.

The Crypto Scheme Unveiled

The fraudulent scheme came to light when Ravindra Mishra, a resident of Kalyan East, filed a complaint with the Malad police. Mishra, who works for a private pharmaceutical company, was introduced to the scheme by Avinash Gupta in 2022. Gupta, claiming to have met Mishra previously for work, invited him to his office in Malad West. There, Gupta presented the ABLC crypto coin investment opportunity, promising monthly interest rates ranging from 12% to 24%.

Gupta’s pitch included videos of Miss India Zoya Afroz and actors Mehak Chahal and Shiva Rindani promoting the scheme. This endorsement by celebrities convinced Mishra and his friends to invest ₹8,000 each initially. Gupta further enticed them by suggesting that bringing in more investors would yield additional earnings. Consequently, Mishra and his friends managed to convince two more people to invest, eventually accumulating a total investment of ₹22.66 lakh.

The scheme appeared legitimate initially, with Mishra’s friend successfully withdrawing money via the ‘Trust Wallet’ app. However, when Mishra attempted to withdraw his funds in January 2023, he faced difficulties. Gupta’s evasive responses and the subsequent bouncing of issued cheques raised red flags, leading Mishra to file a police complaint.

Celebrity Endorsements and Public Trust

The involvement of celebrities in promoting the scheme played a significant role in gaining the trust of investors. Videos featuring Zoya Afroz, Mehak Chahal, and Shiva Rindani endorsing the investment opportunity were used as a marketing tool to attract unsuspecting individuals. These endorsements lent an air of credibility to the scheme, making it easier for Gupta and his associates to lure investors.

The use of celebrity endorsements in financial schemes is not new, but it raises ethical and legal questions. The Securities and Exchange Board of India (SEBI) has previously recommended banning celebrity endorsements of crypto investments to protect consumers from potential fraud. Despite these recommendations, the practice continues, often leading to significant financial losses for investors.

The case highlights the need for stricter regulations and greater accountability for celebrities who endorse financial products. Investors should exercise caution and conduct thorough due diligence before investing in schemes, regardless of the endorsements they receive. The allure of high returns should not overshadow the importance of verifying the legitimacy of investment opportunities.

Legal and Financial Implications

The legal ramifications of the scam are unfolding as the Malad police have registered an FIR against Avinash Gupta and his associates under various sections of the Indian Penal Code, the Information Technology Act, and the Maharashtra Protection of Interest of Depositors Act. The authorities are actively investigating the case to bring the perpetrators to justice and recover the lost funds.

For the victims, the financial impact is severe. Many had invested their hard-earned savings, hoping for substantial returns. The loss of ₹23 lakh is a significant blow, highlighting the risks associated with unregulated investment schemes. This incident serves as a stark reminder of the importance of financial literacy and the need for investors to be vigilant.

The broader implications for the cryptocurrency market in India are also noteworthy. Incidents like these can erode public trust in digital assets and hinder the growth of the crypto industry. It underscores the necessity for robust regulatory frameworks to protect investors and ensure the integrity of the market. As the investigation progresses, it is crucial for authorities to take decisive action to prevent similar scams in the future.