Cryptocurrency fraud: No bail to 2 members of gang that duped 15,810 of ₹113.10 crore

The Bombay high court (HC) on Monday rejected bail applications filed by two members of a gang that duped about 15,810 investors or over ₹113

The Bombay high court (HC) on Monday rejected bail applications filed by two members of a gang that duped about 15,810 investors or over ₹113.10 crore after luring them to invest in several schemes relating to a cryptocurrency - money trade coins (MTC) launched by the group.

Bombay high court.

Both the accused, Sachin Shelar, 43 from Dombivli and Taha Kazi, 26, from Kausa locality in Mumbra, had moved HC for bail claiming that they were ordinary employees of the firms floated by prime accused, Amit Lakhanpal, and as such acted as per his instructions. They claimed that there was, no evidence to suggest that they were beneficiaries of the fraud.

Justice Sandeep Shinde rejected the claims after noticing that evidence collected by police suggested that both of them were active at all stages of the fraud, right from floating schemes, developing websites, monitoring the rate of cryptocurrency, activating and blocking investor accounts and collection of cash from different parts of the country and its appropriation.

HC said though a forensic audit of the groups’ bank accounts was yet to be concluded to trace the money trail, today it could not be said that the two were not beneficiaries of the fraud. In fact, looking at their role in the entire process, it was unlikely that they were not beneficiaries of the fraud, the court added.

Agarwal thereafter visited the group office at Thane and invested ₹10 lakh in MTC. The company then opened Agarwal’s MT pay account and “transferred” the virtual currency worth the investment into his account in January 2018. However, instead of encashing the investment on due dates, the group kept on luring him with high-interest returns by rolling the investment in new schemes floated by it, prompting him to approach the police.

In this backdrop, both Shelar and Kazi were arrested by unit 1 of the Thane crime branch in June 2018. Opposing their bail plea, additional public prosecutor Veera Shinde pointed out that Shelar was not an ordinary employee of the group but was on the board of director of six group companies. Shinde further pointed out that he had fled to Dubai along with the prime accused, Lakhanpal, soon after the crime was registered by Chitalsar police.

Shinde pointed out that Kazi was in charge of technical operations of the group such as developing a website, finalising advertising materials and also controlled online registration of investors and the rate of the group’s cryptocurrency.

The prosecutor further pointed out that the police have found that the group had duped in all 15,810 investors to the tune of ₹113.10 crores. Justice Shinde found force in her submissions and dismissed the bail applications.