- Three people, including the suspected mastermind, were arrested in connection with a $2 million cryptocurrency scam in Varanasi.
- Police recovered five mobile phones, two laptops, $1,175 in cash, and other electronic devices during the operation.
- The accused allegedly created fake websites and a counterfeit coin called BSG to lure investors.
- Authorities say the scheme used multi-level marketing tactics and disappeared with investor funds after delisting the coin.
- Seven out of eight suspects have been apprehended, while efforts continue to locate the final accused individual.
Police in Varanasi announced the arrest of three individuals, including the alleged mastermind, for operating a cryptocurrency scam that defrauded investors of nearly $2 million. The arrests took place on Thursday, and authorities seized mobile phones, laptops, cash, and electronic devices as evidence.
According to Deputy Commissioner of Police Saravanan T, those apprehended include Rajkumar Maurya from Buddha Vihar Colony in Badaun, Arjun Sharma from Unwan in Unnao, and Danish Khan from Golaghat in Varanasi. Police confiscated five phones, two laptops, and about $1,175 in cash during the raid.
During questioning, the suspects admitted to creating and running fake investment sites, including busdglobal.com and www.mbsgworld.com. They also launched a fake cryptocurrency token called “BSG,” which they listed on the Vendex exchange to establish credibility. Police reported that they encouraged investments through multi-level marketing (MLM), a system where investors recruit others for commissions.
The accused offered initial bonuses and profits to attract more people. However, after collecting substantial investments, they delisted the BSG token from the exchange and disappeared with the funds. The fraudulent activities came to light when a victim from Ramnagar, Raj Kumar, filed a complaint at the cybercrime police station on May 14, stating that he and his associates lost nearly $2 million in the scam involving the BSG token.
A total of eight suspects have been identified in the investigation, with seven now in custody. Police are continuing operations in Sonbhadra, Lucknow, and Muzaffarnagar in an effort to apprehend the remaining accused.
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