India

Outrage as $1.8B ‘DGCX’ crypto scam ringleader mocks victims: Asia Express

Posted on by Minakshi

Massive ₹15,000 Crore Crypto Scam Ringleader Taunts Victims, Sparks National Outrage

A massive cryptocurrency investment scam, allegedly siphoning off a staggering ₹15,000 Crore (approximately $1.8 billion USD) from investors, has triggered widespread outrage across India. The alleged ringleader, still at large, has reportedly mocked the victims, further inflaming public anger.

Details of the DGCX Scam

The scam, operating under the guise of a platform purportedly affiliated with the Dubai Gold and Commodities Exchange (DGCX), lured in investors with promises of exceptionally high returns. The platform, known as XinKangJia, marketed itself as the Chinese branch of the DGCX, promising investors a fixed daily return of 1% on USDT-denominated investments in gold and oil.

How the Scam Unfolded

  • The platform reportedly attracted over 2 million users.
  • On June 25th, withdrawals were abruptly frozen, leaving investors in the lurch.
  • The very next day, the platform went completely offline, vanishing with investors’ funds.
  • Before disappearing, the platform allegedly transferred around 1.8 billion USDT (₹15,000 Crore) to offshore wallets through Tornado Cash, a crypto mixing service.

Arrests Made, But Ringleader Remains at Large

While authorities in Hong Kong have made arrests in connection with a smaller, related operation that defrauded victims of over 3 million Hong Kong dollars, the primary ringleader of the XinKangJia platform remains at large. This individual’s reported taunting of the victims has only intensified the anger and calls for swift justice.

Calls for Investigation and Regulation

The incident has ignited a nationwide debate regarding the need for stricter regulation of the cryptocurrency market in India to protect investors from such fraudulent schemes. Consumer groups and financial experts are urging the government to take immediate action to prevent similar scams from happening in the future.

Summary:

  • A massive ₹15,000 Crore crypto scam has defrauded millions of investors.
  • The alleged ringleader has reportedly mocked the victims, intensifying public outrage.
  • The scam has triggered calls for stricter cryptocurrency regulation in India.
Key Takeaways:

  • Investors must exercise extreme caution when investing in cryptocurrencies, particularly platforms promising unrealistically high returns.
  • The lack of robust regulation in the cryptocurrency market makes investors vulnerable to scams and fraud.
  • Authorities need to prioritize the investigation and prosecution of individuals involved in cryptocurrency-related fraud.
  • This scam highlights the need for increased financial literacy among the Indian public to protect them from fraudulent investment schemes.