The mastermind of multicrore scam and the man behind running cryptocurrency company Bitconnect Divyesh Darji (Asia head) has been arrested by Gujarat CID from Delhi airport.
Darji and conspirators are accused of scam worth Rs 88,000 crore, who lured Indian investors for a big return during the government’s demonetisation drive.
A look-out circular was already issued against Darji who was living in Dubai.
Darji’s outfit was registered in the United Kingdom. However the operational activities were essentially executed from the Burj Khalifa tower in Dubai. The company had also offices in Surat.
Most of the promoters of this scheme fled abroad after Gujarat CID started the investigation. Many high-profile names, including former BJP MLA Nalin Kotadiya, are accused in this scam along with Mahendra Chaudhari and Satish Kumbhani.
Kumbhani and other investors in Gujarat poured bitcoin worth $3.2 billion into Bitconnect, which was started in November-December 2016.
The company remained active till January this year. It released 2.80 crore coins, out of which 1.80 crore coins were sold to investors.
The accused held seminars, events in India and other countries promising high interest — daily interest rate of 1 per cent. Besides, it promised to double investors money in 100 days in exchange for Bitcoin.
After the value of BCC (Bitconnect own token currency) crashed to $2 overnight, BitConnect announced it would shut down its cryptocurrency exchange and lending operation.
The development was reported by DNA.