India‘s authorities uncovered cryptocurrency scams connected to the alleged head of BitConnect Asia, Divyesh Darji. Darji had also been marketing several dubious cryptocurrency-related investments. Regal Coin being one of them that offers short-term returns of 5,000 percent on any investments made.
He’s also promised Regal Coin would make investors more money than holding Bitcoin. However, they would need to stay invested in a lock-in period of 99 days. Darji was also a suspect during investigations into another fraudulent digital asset known as Dekado coin which duped many people.
Police spokesperson maintains Regal Coin, and BitConnect shared some similarities, and Darji told investors he holds access to a robotic trading algorithm that generates profit. He had also pledged referral bonuses to buyers and promised to be paid every 11 days to those who recruit more people to download the scam app.
The market value of Regal Coin peaked around the second half of 2017 when it hit close to $90. The report states firm later folded after collecting nearly Rs 45 lakh from investors. Police reveal scam could have defrauded investors for a significantly larger amount. After being released on bail Darji is reportedly on the run.
Divyesh Darji, a promoter of now-defunct cryptocurrency investment program BitConnect was accused by The Criminal Investigation Department (CID) in Gujarat, India. They ceased all the ongoing operations in January of last year. The scams involved luring people to invest by promising unrealistic returns as high as 5,000%. An official said that the estimated amount of the scam sums up around tens of millions and more.
The scam was discovered after a Gujarat resident, Vishal Savalia approached the bench claiming that he had lost around $26,783 in a Regal Coin scam. A CID official further explained that “Savalia had allegedly given the money to Darji’s daughter, Dimki through another accused and Darji’s aide, Ramdayal Purohit and Dimki herself had downloaded Regal Coin app in Savalia’s cellphone and get him registered on its website.”