India

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

Posted on by Minakshi

₹15,000 Crore Crypto Scam: Ringleader’s Taunt Adds Salt to Wounds

A massive cryptocurrency investment fraud, estimated at a staggering ₹15,000 Crore (approximately $1.8 Billion), has triggered widespread outrage across India. The alleged mastermind behind the scheme, linked to a fraudulent platform purportedly affiliated with the Dubai Gold and Commodities Exchange (DGCX), has further enraged victims by publicly mocking their intelligence.

The DGCX XinKangJia Fiasco: A Deep Dive

The scandal revolves around a platform known as DGCX XinKangJia, which targeted investors primarily in mainland China. The platform promised exceptionally high returns, luring in unsuspecting individuals with the promise of 1% daily fixed returns on USDT-denominated investments in gold and oil.

  • The platform claimed to be the Chinese branch of the legitimate Dubai Gold and Commodities Exchange (DGCX).
  • On June 25th, the platform abruptly froze withdrawals for its estimated 2 million users.
  • Within a day, XinKangJia completely shut down, leaving investors stranded and financially devastated.

Modus Operandi: How the Scam Unfolded

Investigations suggest a sophisticated operation involving the siphoning off of funds through various channels. Preliminary reports indicate that before its collapse, the platform allegedly transferred around 1.8 Billion USDT (roughly 13 Billion Yuan or ₹15,000 Crore) through Tornado Cash to various offshore wallets. This complex trail has made it difficult to trace the stolen funds, further frustrating authorities and victims alike.

Arrests Made, But Justice Remains Elusive

While authorities in Hong Kong have made arrests in connection with the alleged cryptocurrency investment ring, the main alleged ringleader remains at large and is reported to have mocked the investors who fell victim to the scam. This brazen display has sparked fury and calls for swift and decisive action to bring the perpetrators to justice.

Summary:

  • A ₹15,000 Crore cryptocurrency scam has defrauded investors using a platform falsely associated with the DGCX.
  • The platform, DGCX XinKangJia, promised unrealistic daily returns, attracting millions of users before collapsing.
  • The alleged ringleader remains at large and has reportedly mocked the victims.
Key Takeaways:

  • The incident highlights the significant risks associated with unregulated cryptocurrency investment platforms.
  • Investors should exercise extreme caution and conduct thorough due diligence before investing in any crypto-related ventures, especially those promising unusually high returns.
  • The case underscores the urgent need for stricter regulations and enforcement mechanisms to protect investors from fraudulent schemes in the crypto space.
  • The use of services like Tornado Cash complicates the tracing of illicit funds and hinders investigative efforts.
  • Authorities must collaborate internationally to track down and prosecute individuals involved in cross-border crypto scams.