A Crypto mining operation funded by Ponzi scheme has been raided by police in India where one employee was taken to the cell. The raid was conducted by Delhi Police Cyber Cell on a cryptocurrency mining operation was held in a complex in Dehradun covering 4,000 square foot.
This raid occurred after the arrest of the owners of the mine Mr. Vijay Kumar and Kamal Singh on April 25th. Both are accused of amassing more than $14.9 million through an illegal Ponzi scheme promoted by bits2btc.com.
It has now been reported that police found over 100 Ethereum mining rigs which comprised high powered computer processors, servers, and 500 graphics cards. Neighbors have also revealed whenever they got curious and inquired what was going on the owners responded by saying it was a computer processing unit that had servers of a big company.
Through interrogation of the two owners, police have now determined that the Ethereum mining rig was indeed funded by the bits2btc Ponzi scheme. Also, they had expanded their criminal activities by launching two crypto coins; Mcap and HBX, and an additional scam – gainbitcoin.com.
The two had rented the property where the Ethereum mining rig was located since September 2017. They also hired eight employees to look after the mining hardware machines. Police estimate that in three months of operation, the mining had generated about $105,000.
Further interrogations have revealed there is a third party. Local police officers have been sent to arrest S.S Alagh who is believed to be the third co-founder of bits2btc.com. Arresting officers state that there was a rift between the owners that escalated to the point where Mr. Singh and Mr. Alagh kidnapped Mr.Kumar.
It was during the follow up of the complain filled by Mr. Kumar that the officers were able to discover the fraudulent activities which resulted in the arrests.
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