The four accused operated with the front of Bengaluru-based Longrich Technologies and promised investors daily returns of between 1% and 2%
The group targeted tech-savvy victims who had enough knowledge of cryptocurrencies to consider them as an investment.
According to the police, the group has earned more than INR 100 Cr through the scam.
Four persons have been arrested in Kerala’s Kannur district for allegedly running a Ponzi scheme masked as a cryptocurrency investment scheme. The Kannur Police have named Mohammed Riyas and four others in the scam.
The accused initially began the scam as a run-of-the-mill Ponzi Scheme where they promised investors daily returns of 1%-2% if they invested in Bengaluru-based ‘Longrich Technologies’.
After they began paying older investors with the money they got from new investors, word-of-mouth spread quickly and they were able to get more ‘investors’ on board. Just as it happens…