Malappuram man arrested for morris coin fraud
The police suspect that crores of rupees were swindled in the fraud on the lines of the money chain.
The police suspect that crores of rupees were swindled in the fraud on the lines of the money chain.
The police suspect that crores of rupees were swindled in the fraud on the lines of the money chain.
Nilambur: A 36-year-old man was arrested for duping investors on the pretext of trading in morris coin, a cryptocurrency similar to bitcoin.
Malappuram native Nishad, the MD of Long Reach Global Private Ltd, was arrested for the fraud, running into several crores of rupees.
On the instructions of district police chief U Abdul Karim, the police had suo motu filed a case under the Prize Chits and Money Circulation Schemes (Banning) Act.
A team led by Pookottumpadam inspector P Vishnu seized the documents from the MD's house at Thottakara. Lakhs of people from both within and outside the state had made deposits at the firm, according to the police.
The police suspect that crores of rupees were swindled in the fraud on the lines of the money chain.
The depositors were promised that they would get Rs 270 for each of the 300 days if they deposited a minimum amount of Rs 15,000. They were also promised commission if they could get another person to make deposits.
The depositors were also told that the deposit money would be converted to the cryptocurrency, morris coin. And that after 300-days, they could sell the morris coin.
However, the police pointed out that this was not possible as the company was not listed in the stock exchange and that the firm did not have an open trading system. Nor does it have an office in the state.
The statements of the depositors will be recorded from Wednesday.
However, MD Nishad claimed that the company was functioning in compliance with the law and that he would cooperate with the probe.