<p>Fraudsters in the north Indian state of Himachal Pradesh allegedly defrauded multiple crypto investors of more than $24 million&nbsp;(Rs 200 crore) over five years, beginning in 2018. This period was marked by the rise in investor interest in cryptocurrencies.&nbsp;</p>

<p><br />
The suspects, thought to be part of a criminal syndicate, enticed individuals with promises of high returns within a short timeframe by encouraging investments in KRO and DGT coins. They adopted a Ponzi-style scheme, luring initial investors to engage more investors to recruit others into the scheme.&nbsp;<br />
<br />
The matter was brought to light in the state legislature, or Vidhan Sabha, by independent legislator Hoshyar Singh, estimating the amount swindled in Kangra and Hamirpur alone to be over $24 million&nbsp;(Rs 200 crore), as reported by PTI.</p>

<p><strong>Also read: <a href="https://www.wionews.com/india-news/delhi-police-registers-anti-terror-case-against-newsclick-raids-journalists-amid-china-funding-row-641971">Delhi Police registers anti-terror case against NewsClick, raids journalists amid China funding row</a></strong></p>

<p>The exact amount of the fraud is yet to be ascertained, said Deputy Inspector General of Police, Northern Range, Abhishek Dhullar, who heads the SIT, said on Monday (Oct 2).</p>

<p><br />
So far, five people have been apprehended in connection with the fraud, but the mastermind is still at large, police said.&nbsp;</p>

<p><br />
The frauds kept control of their operation using a combination of misinformation, deception, and threats to maintain control over their scheme and continued extorting money from unsuspecting investors by manipulating the prices of their coins, Dhullar added.</p>

<p><strong>Also read:<a href="https://www.wionews.com/india-news/sanatana-dharma-is-the-only-religion-rest-all-sects-methods-of-worship-says-yogi-adityanath-641928">&nbsp;Sanatana Dharma is the only religion, rest all sects, methods of worship, says Yogi Adityanath</a></strong></p>

<p>The first coin they released was the "Korvio Coin," also known as KRO coins.</p>

<p><br />
They demanded a one-time activation fee from the buyers and guaranteed them high returns. The scammers employed three to four cryptocurrencies over five years.</p>

<h2><strong>What is cryptocurrency?&nbsp;</strong></h2>

<p>Cryptocurrency is a type of digital money that operates as a means of exchange through a blockchain-based computer network and is not supported or maintained by any central authority, such as a bank or government.</p>

<h2><strong>Modus operandi</strong></h2>

<p>A Ponzi scheme is a specific kind of investment fraud in which returns are given to previous investors using the money that new investors have supplied rather than actual gains.</p>

<p>In Himachal, the fraudsters&nbsp;encouraged investors to keep recruiting new members, which created a cycle where money from new investments was used to pay returns to earlier investors and these initial investors got huge returns and became brand ambassadors of the scheme.</p>

<p>In order to list their coins and influence their pricing, the scammers also created bogus websites.</p>

<h2><strong>Investigation so far</strong></h2>

<p>"We are close to nabbing the kingpins of cryptocurrency scams in Himachal Pradesh and have mapped their assets and are conducting a financial investigation," Director General of Police Sanjay Kundu told PTI.<br />
<br />
&nbsp;"My advice to people is not to fall prey to the cryptocurrency fraudsters," he added.</p>

<p><br />
In recent years, there have been several scams involving cryptocurrencies, including the well-known 2021 Squid coin hoax, in which the coin's creators allegedly made off with $23 million.<br />
<br />
<em>(With inputs from agencies)</em><br />
&nbsp;</p>

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Fraudsters in the north Indian state of Himachal Pradesh allegedly defrauded multiple crypto investors of more than $24 million (Rs 200 crore) over five years, beginning in 2018.

Fraudsters in the north Indian state of Himachal Pradesh allegedly defrauded multiple crypto investors of more than $24 million (Rs 200 crore) over five years, beginning in 2018. This period was marked by the rise in investor interest in cryptocurrencies. The suspects, thought to be part of a criminal syndicate, enticed individuals with promises of high returns within a short timeframe by encouraging investments in KRO and DGT coins. They adopted a Ponzi-style scheme, luring initial investors to engage more investors to recruit others into the scheme. The matter was brought to light in the state legislature, or Vidhan Sabha, by independent legislator Hoshyar Singh, estimating the amount swindled in Kangra and Hamirpur alone to be over $24 million (Rs 200 crore), as reported by PTI. Also read: Delhi Police registers anti-terror case against NewsClick, raids journalists amid China funding row The exact amount of the fraud is yet to be ascertained, said Deputy Inspector General of Police, Northern Range, Abhishek Dhullar, who heads the SIT, said on Monday (Oct 2). So far, five people have been apprehended in connection with the fraud, but the mastermind is still at large, police said. The frauds kept control of their operation using a combination of misinformation, deception, and threats to maintain control over their scheme and continued extorting money from unsuspecting investors by manipulating the prices of their coins, Dhullar added. Also read: Sanatana Dharma is the only religion, rest all sects, methods of worship, says Yogi Adityanath The first coin they released was the "Korvio Coin," also known as KRO coins. They demanded a one-time activation fee from the buyers and guaranteed them high returns. The scammers employed three to four cryptocurrencies over five years. What is cryptocurrency? Cryptocurrency is a type of digital money that operates as a means of exchange through a blockchain-based computer network and is not supported or maintained by any central authority, such as a bank or government. Modus operandi A Ponzi scheme is a specific kind of investment fraud in which returns are given to previous investors using the money that new investors have supplied rather than actual gains. In Himachal, the fraudsters encouraged investors to keep recruiting new members, which created a cycle where money from new investments was used to pay returns to earlier investors and these initial investors got huge returns and became brand ambassadors of the scheme. In order to list their coins and influence their pricing, the scammers also created bogus websites. Investigation so far "We are close to nabbing the kingpins of cryptocurrency scams in Himachal Pradesh and have mapped their assets and are conducting a financial investigation," Director General of Police Sanjay Kundu told PTI. "My advice to people is not to fall prey to the cryptocurrency fraudsters," he added. In recent years, there have been several scams involving cryptocurrencies, including the well-known 2021 Squid coin hoax, in which the coin's creators allegedly made off with $23 million. (With inputs from agencies) ×

India crypto fraud: Himachal Pradesh investors lose $24mn in a series of 'rug-pulls'

<p>Hackers stole around $200 million from crypto firm Mixin early on Saturday (September 23), the company said&nbsp;on Monday in what researchers say is the largest crypto theft so far this year.</p>

<p>Mixin, which lists its location on LinkedIn as Hong Kong, said the database of its network's cloud service provider was "attacked by hackers, resulting in the loss of some assets" and that "the funds involved are approximately US$200 million".</p>

<p>Mixin describes itself as a network for transferring digital assets. It has one million users, according to its website.</p>

<p><a href="https://www.wionews.com/videos/gravitas-63-million-indian-women-own-cryptocurrency-626200"><strong>Watch |&nbsp;Gravitas: 63 million Indian women own Cryptocurrency</strong></a></p>

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<p>It said on X, formerly known as Twitter, that it had stopped allowing users to withdraw their funds from the network, but that transfers were not affected and that services would re-open once the vulnerabilities were fixed.</p>

<p>Mixin will announce a solution for "how to deal with the lost assets", it said.</p>

<p>At $200 million, the hack would be the 10th largest crypto hack of all time, by volume of crypto stolen, and the biggest so far in 2023, according to blockchain research firm Elliptic.</p>

<p><a href="https://www.wionews.com/world/seoul-north-korean-hackers-stole-us-12-billion-by-crypto-hacking-and-other-illicit-cyber-activities-545660"><strong>Also read |&nbsp;Seoul: North Korean hackers steal US$ 1.2 billion by crypto hacking and other illicit cyber activities</strong></a></p>

<p>Last year, hackers stole crypto worth as much as $3.8 billion, making it the worst year on record, according to blockchain researchers Chainalysis.</p>

<p><strong>WATCH WION LIVE HERE:&nbsp;</strong></p>

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Hackers stole around $200 million from crypto firm Mixin early on Saturday (September 23), the company said on Monday in what researchers say is the largest crypto theft so far this year.

Hackers stole around $200 million from crypto firm Mixin early on Saturday (September 23), the company said on Monday in what researchers say is the largest crypto theft so far this year. Mixin, which lists its location on LinkedIn as Hong Kong, said the database of its network's cloud service provider was "attacked by hackers, resulting in the loss of some assets" and that "the funds involved are approximately US$200 million". Mixin describes itself as a network for transferring digital assets. It has one million users, according to its website. Watch | Gravitas: 63 million Indian women own Cryptocurrency × It said on X, formerly known as Twitter, that it had stopped allowing users to withdraw their funds from the network, but that transfers were not affected and that services would re-open once the vulnerabilities were fixed. Mixin will announce a solution for "how to deal with the lost assets", it said. At $200 million, the hack would be the 10th largest crypto hack of all time, by volume of crypto stolen, and the biggest so far in 2023, according to blockchain research firm Elliptic. Also read | Seoul: North Korean hackers steal US$ 1.2 billion by crypto hacking and other illicit cyber activities Last year, hackers stole crypto worth as much as $3.8 billion, making it the worst year on record, according to blockchain researchers Chainalysis. WATCH WION LIVE HERE:

Hackers steal $200 million off Hong Kong firm in largest crypto theft of year

According to the reports, Illicit use of cryptocurrencies hit a record $20.1 billion last year as transactions involving companies targeted by U.S. sanctions skyrocketed. Watch this video to know more.

World Business Watch: Crypto crime hits record $20 billion in 2022, says report