India

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

Posted on by Minakshi

₹15,000 Crore Crypto Scam: Ringleader’s Taunts Add Salt to Wounds

A massive cryptocurrency investment scam, estimated at ₹15,000 Crore (approximately $1.8 Billion), has rocked the Indian investor community. While authorities have made some arrests, the alleged mastermind remains at large and has reportedly mocked the victims, further intensifying the outrage.

The DGCX Deception: Promises of High Returns Turn Sour

The scam revolves around a platform falsely claiming affiliation with the Dubai Gold and Commodities Exchange (DGCX). This platform, known as XinKangJia in mainland China, lured investors with promises of guaranteed daily returns of 1% on investments in gold and oil, denominated in USDT.

How the Scam Unfolded

  • The platform aggressively marketed itself as the Chinese arm of the reputable DGCX.
  • Investors were enticed with the promise of fixed daily returns, a classic hallmark of Ponzi schemes.
  • On June 25th, the platform abruptly halted withdrawals, leaving investors in a state of panic.
  • The following day, the platform vanished entirely, leaving behind a trail of shattered dreams and empty wallets.

Massive Funds Siphoned Offshore

Before disappearing, the platform is alleged to have moved approximately 1.8 Billion USDT (₹15,000 Crore) through Tornado Cash, a cryptocurrency mixer, to offshore wallets. This sophisticated tactic makes tracing and recovering the funds extremely difficult.

Justice Delayed: Arrests Made, Mastermind Still at Large

While authorities in Hong Kong have arrested four individuals in connection with the scam, the alleged ringleader remains at large. Reports suggest the mastermind is openly taunting the victims, adding insult to injury. The hunt for the individual is ongoing, with international cooperation being sought.

Summary:

  • A ₹15,000 Crore crypto scam, falsely linked to DGCX, has defrauded investors.
  • The platform promised 1% daily returns before abruptly freezing withdrawals and disappearing.
  • The alleged ringleader remains at large and is reportedly mocking the victims.
Key Takeaways:

  • Be wary of investment schemes promising unrealistically high guaranteed returns.
  • Always conduct thorough research and due diligence before investing in any cryptocurrency platform.
  • Verify the legitimacy of any platform claiming affiliation with established financial institutions.
  • The use of cryptocurrency mixers like Tornado Cash highlights the challenges in tracing illicit funds.
  • Report any suspected fraudulent activity to the relevant authorities immediately.