India

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

Posted on by Minakshi

Massive ₹15,000 Crore Crypto Scam: Ringleader’s Audacity Sparks Fury in India

A massive cryptocurrency investment scam, allegedly siphoning off a staggering ₹15,000 Crore (approximately 1.8 billion USDT), has triggered outrage across India after reports emerged of the alleged ringleader publicly mocking the victims.

The DGCX XinKangJia Platform: A Ponzi Scheme Unravels

The scheme centered around a platform called DGCX XinKangJia, deceptively marketed as the Chinese arm of the reputable Dubai Gold and Commodities Exchange (DGCX). The platform lured investors with promises of incredibly high, fixed daily returns of 1% on USDT investments tied to gold and oil.

According to blockchain security firm SlowMist, just before shutting down operations, the platform allegedly moved around ₹15,000 Crore through Tornado Cash to various offshore wallets. This action effectively made tracing the funds exceptionally difficult.

Hong Kong Arrests and the Ringleader’s Taunts

While Hong Kong police have arrested four individuals in connection with a smaller offshoot of the scam (involving approximately ₹3 Crore Hong Kong Dollars), the reported main mastermind remains at large. Adding insult to injury, reports indicate that this individual has brazenly mocked the victims, further fueling public anger.

The Fallout: Millions Impacted

The sudden collapse of the XinKangJia platform has left an estimated 2 million users stranded, with their investments virtually vanished. The situation highlights the significant risks associated with unregulated cryptocurrency investments and the potential for devastating financial losses.

Summary:

  • A ₹15,000 Crore crypto scam operating under the guise of DGCX XinKangJia has defrauded millions.
  • The platform promised unrealistic returns, transferring funds offshore before disappearing.
  • Reports indicate the alleged ringleader is mocking victims, sparking widespread outrage.
Key Takeaways:

  • Unregulated cryptocurrency platforms pose a significant risk to investors.
  • The promise of excessively high returns should be treated as a major red flag.
  • Due diligence and thorough research are crucial before investing in any cryptocurrency venture.
  • The DGCX scam underscores the need for stricter regulation and enforcement in the crypto space in India.
  • Investors should be wary of platforms claiming affiliation with established financial institutions without proper verification.