Binance, Indian police bust renewable energy scam, seize $100,000 in USDT

As a seasoned analyst with years of experience navigating the complex world of financial scams and digital assets, I must say this collaboration between Binance and the Delhi Police is a significant step towards ensuring the safety and trustworthiness of the cryptocurrency space, especially within emerging markets like India.


Collaboratively, Binance and the Delhi Police have taken down a fraudulent scheme worth approximately $100,000. This deception had been perpetrated by making misleading promises about India’s green energy projects to potential investors.

Binance, a well-known cryptocurrency exchange, has collaborated with Indian law enforcement to dismantle a complex scam linked to “M/s Goldcoat Solar,” a fake organization. This scheme, which deceptively suggested connections to India’s renewable energy projects, led to several arrests and the confiscation of more than $100,000 worth of Tether’s (USDT) stablecoin, according to an Inc42 report from October 15th.

The con trick involved making misleading statements that they had been granted authorization from the Ministry of Power to aid in increasing India’s solar power output to 450 gigawatts by 2030. By promoting lucrative returns, this scheme lured many investors under false pretenses, claiming it supported the nation’s renewable energy objectives. Binance indicated that the deception spread rapidly on social media platforms, as scammers assumed identities of high-ranking officials and leveraged the names of notable figures to boost their trustworthiness.

Victims were tricked by fabricated financial reports, supposedly from earlier investors, which the group used to create confidence in their plan. However, investigations uncovered that several SIM cards had been secretly activated using innocent people’s identities to hide the real culprits’ identities. Some of these SIM cards were even sent abroad, making the investigation more intricate. This is indicated in the report.

Money taken from victims was distributed across multiple bank accounts, and some of it was transformed into cryptocurrencies, making it harder to follow the trail. Binance aided the Delhi Police by offering analytical help, enabling investigators to trace the financial transactions more effectively, as stated in the report.

This move comes after Binance resumed operations in India, registering itself as a reporting entity with the Financial Intelligence Unit, aiming to adhere to local rules and regulations while facing increased scrutiny against unlicensed cryptocurrency exchanges.

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2024-10-15 14:26