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: A National Disgrace

A cryptocurrency investment scam, disguised as a legitimate platform affiliated with the Dubai Gold and Commodities Exchange (DGCX), has defrauded Indian investors and others of a staggering **₹15,000 Crore (approximately $1.8 billion USD)**. The alleged mastermind behind the operation has added insult to injury by publicly mocking the victims, sparking widespread outrage across the nation.

The Modus Operandi: False Promises and Frozen Funds

The platform, operating under the name XinKangJia in mainland China, lured in unsuspecting investors with the promise of guaranteed high returns. Authorities believe over **2 million users** were impacted. Investors were promised a fixed daily return of 1% on investments denominated in USDT and purportedly linked to gold and oil trading.

Sudden Collapse and Offshore Transfers

The scheme unravelled when the platform abruptly froze all withdrawal requests on June 25th. Just a day later, the entire platform went offline, leaving investors in a state of panic and despair. Blockchain analysis suggests that approximately **₹15,000 Crore** was siphoned off through Tornado Cash to various offshore wallets before the platform’s demise.

Authorities Investigate: Justice Delayed?

While authorities in Hong Kong have apprehended **four individuals** linked to the scam, the alleged ringleader remains at large and has brazenly taunted the victims, further fueling public anger. The incident raises serious questions about the regulatory oversight of cryptocurrency platforms and the need for greater investor awareness in India.

The investigation continues, with Indian authorities likely collaborating with international counterparts to track down the perpetrator and recover the stolen funds. However, the chances of complete recovery remain slim, leaving many investors facing devastating financial losses.

Summary:

  • A crypto scam disguised as a DGCX affiliate defrauded investors of roughly ₹15,000 Crore.
  • The platform, XinKangJia, promised 1% daily returns before abruptly freezing withdrawals and disappearing.
  • The alleged ringleader is taunting victims, sparking outrage while authorities investigate and attempt to recover the stolen funds.
Key Takeaways:

  • This scam highlights the significant risks associated with unregulated cryptocurrency investments.
  • Investors must exercise extreme caution and conduct thorough due diligence before investing in any platform promising guaranteed high returns.
  • Stronger regulatory frameworks are needed in India to protect investors from similar scams.
  • Cross-border collaboration is crucial to track down perpetrators and recover stolen funds in these international scams.
  • Increased public awareness campaigns are essential to educate individuals about the red flags of investment fraud.