India

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

Posted on by Minakshi

₹15,000 Crore Crypto Scam Kingpin Taunts Victims: A National Outrage

A massive cryptocurrency scam, allegedly siphoning off a staggering ₹15,000 Crore (1.8 Billion USDT) from unsuspecting investors, has sparked fury across India. The alleged mastermind behind the fraudulent scheme, linked to a platform falsely claiming affiliation with the Dubai Gold and Commodities Exchange (DGCX), is now openly mocking the victims.

The Anatomy of the Deception

The scam, operating under the guise of the “XinKangJia” platform, lured in over 2 million users with promises of exorbitant returns. Investors were promised a fixed daily return of 1% on USDT-denominated investments in gold and oil. This proved to be nothing more than a meticulously crafted illusion.

The platform, marketed as the Chinese arm of the legitimate Dubai DGCX, abruptly halted withdrawals on June 25th, leaving investors in a state of panic. The following day, the platform vanished entirely, leaving a trail of financial devastation in its wake.

How the Money Vanished

Blockchain analysis reveals a sophisticated money laundering operation. Before disappearing, the XinKangJia platform allegedly transferred approximately 1.8 billion USDT through Tornado Cash, a cryptocurrency mixer, to obscure the funds’ origin and destination, before routing them to offshore wallets. This complex maneuver further complicates efforts to recover the stolen assets.

Police Action and the Evasive Mastermind

While authorities in Hong Kong have reportedly arrested four individuals in connection with a similar cryptocurrency investment scam, the alleged ringleader of the DGCX scam remains at large. Adding insult to injury, reports indicate the individual has publicly derided the intelligence of those who fell for the scam, fueling widespread outrage and demands for justice.

Summary:

  • ₹15,000 Crore crypto scam, falsely linked to DGCX, leaves investors reeling.
  • Mastermind taunts victims, adding to the anger and frustration.
  • Investigations continue as authorities attempt to track down the funds and bring the perpetrators to justice.
Key Takeaways:

  • Be extremely cautious of investment platforms promising unrealistically high returns.
  • Always verify the legitimacy of any platform claiming affiliation with established financial institutions like the DGCX.
  • Exercise due diligence and research before investing in cryptocurrencies or any other financial instrument.
  • The use of cryptocurrency mixers like Tornado Cash highlights the need for greater regulatory oversight of the crypto space.
  • Stay informed about common scam tactics and report any suspicious activity to the relevant authorities.