Mega crypto ponzi scheme busted by B'luru CCB; crores of rupees defrauded [details]

Bengaluru CCB has arrested four persons in connection to a massive cryptocurrency Ponzi scheme and is on the lookout for the brains behind it all. Sleuths from Central Crime Branch (CCB) busted the crypto Ponzi scheme, through which the fraudsters defrauded crores of rupees in a matter of few months.

An app called "ShareHash" and the company with the same name dwindled crores of rupees in the name of investments in cryptocurrency trading. Promising huge returns on low investments, the app ShareHash grew in popularity and in no time had hundreds of investors.

"Accused promised a daily return of Rs 29 for Rs 3,000 invested and Rs 49 for Rs 5,000 investment. The firm started operating in the first week of November 2021. As regular payments were made to the investors, ShareHash won the confidence of the people soon and there were more investors by end of December 2021. In the same time, accused made another offer saying an individual can start his or her own cryptocurrency business and demanded Rs 42,000 for providing the needed materials," he said.

The CCB Bengaluru arrested four persons for running and operating a crypto-miner-HNT (Helium Crypto Token) through ShareHash mobile app. The sleuths of CCB seized Rs 15 crore routed through 44 different bank accounts, 1.6 Kg of gold ornaments, Rs 78 lakh in cash, 44 Digital Signature Certificate tokens, 5 company seals, mobile phones, and laptops. Bengaluru City Police Commissioner Kamal Pant announced a cash reward of Rs 70,000 for the team that busted the ponzi scheme.

Founders at large, board of directors behind bars

CCB officials are still looking for the "founder directors" of ShareHash, simply identified as Jimmy and Stacy, who remain at large. But they have successfully arrested the "board of directors." Here's how three Bengaluru youths and one from Belagavi got behind the Ponzi scheme.

The founding directors Jimmy and Stacy hired Sheetal Bastawad from Belagavi after contacting him on social media. His title in the company would be of a "company secretary" with Rs 1 lakh remuneration in addition to commission. Sheetal then hired three Bengaluru youths after they contacted him through a message they received.

The Bengaluru youths were hired as "board of directors". They have been identified as Imran Riyaz from Gurappanpalya, a cab driver; Zabiulla Khan, a scrap merchant cum painter; and a two wheeler mechanic Rehamatulla Khan of BTM Layout II stage. They reportedly received around Rs 3 crore to their bank accounts. All four of them are now behind bars, booked under relevant sections.

To give an idea of how vast this scam ran, there were over 100 ShareHash WhatsApp groups with over 200 members in each group. The fraudsters lured investors through bulk messages sent to mobile phones and emails. The app is still listed on Google Play Store as of this writing and has 50,000+ installs.