Crypto investor loses ₹50.40-lakh to HK swindler posing as analyst

Mumbai A 42-year-old Andheri based engineer has filed a complaint with the Central Region Cyber police station after being defrauded of ₹50

Mumbai A 42-year-old Andheri based engineer has filed a complaint with the Central Region Cyber police station after being defrauded of ₹50.40-lakh by a Hong Kong based woman. Incidentally, the complainant who works in a Mulund-based company, is an enthusiastic investor himself who regularly dabbles in the share market, crypto currency and uses crypto exchange services.

Crypto investor loses ₹50.40-lakh to HK swindler posing as analyst

The fraud, Zhang Yami, befriended him on WhatsApp on August 26, introducing herself as a cryptocurrency analyst at JP Morgan, in Hong Kong. Her first message however was intended for a Desai Sharma. When the complainant told her that she had sent the message to a wrong person, she apologised but kept the chats on. The complainant responded to her messages and eventually the two became friends.

She persuaded him into investing in a crypto coin of People’s Bank of China, promising daily guaranteed returns. The complainant invested ₹50.40-lakh in the scheme, but neither received the promised profit nor the invested money, prompting him to lodge the complaint.

According to the police, after befriending him, the woman enquired about his investment plans, after which she informed him that People’s Bank of China (the central bank of the People’s Republic of China) along with JP Morgan was promoting DCEP Coin. She told the complainant if he invests money in the Coin he would earn 3-10% profit daily.

When the complainant showed interest, Yami asked him to download a browser and open a crypto currency exchange account to invest and avail the benefits.

“The complainant initially invested small amounts and got promised returns. He trusted the scheme and between September 2-16 invested $41834 (equivalent to around ₹34,61,826) and was supposed to get $57608 (equivalent to around ₹47,67,148). But when he tried to withdraw the money from the system his request was declined,” said a police officer, requesting anonymity.

When he contacted the company’s customer care service, he was informed that he needed to pay a 30% tax on the amount to make a withdrawal. The complainant paid up and yet could not withdraw the money, the officer added. Thereafter, he was informed that he needed to pay an additional 10% mandatory fee to withdraw the money. That’s when he realised that he had been duped – by then he had already paid $59288 (equivalent to around ₹50.40 lakhs) towards the investment.

He then approached the Central Region Cyber police station and lodged the complaint.

The police have registered a case under sections 420 (cheating), 467 (forgery of valuable security) of Indian Penal Code and 66D (cheating by personation by using computer resource) of Information Technology Act.

“We are in process of collecting details of the transactions and the beneficiary bank accounts,” another police officer said.