Indian Police Busted $16 Million in Max Crypto Trading Scam

by

As a researcher and someone who has closely followed the world of online scams and frauds, I find the dismantling of the ‘Max Crypto Trading’ scheme by the Economic Offences Wing (EOW) of the Cyberabad Police both intriguing and concerning. The arrest of Kunjathbail Mujib Sayyad from Mangalore is a significant development in this case, which allegedly duped numerous investors in Shadnagar and Hyderabad, including Shaik Ahmed, a resident of Farooqnagar Village in Ranga Reddy district.

The Cyberabad Police’s Economic Offences Wing (EOW) has successfully taken down an online investment scam, resulting in the arrest of Kunjathbail Mujib Sayyad from Mangalore, Karnataka. Sayyad is believed to have orchestrated a deceitful venture named “Max Crypto Trading,” which swindled many investors in Shadnagar and Hyderabad.

As an analyst, I’ve come across schemes that have enticed people with the allure of tripling their investments within a short time frame of 150 days. The offer was hard to resist. Moreover, the incentives were designed in such a way that investors could earn commissions by bringing in new members. For every two new members enrolled, an investor stood to gain a 2% commission, while four new members meant a substantial 5% commission. This multi-level marketing structure proved to be quite effective in attracting a large number of participants.

The Hyderabad Cyberabad Police have dismantled an online fraudulent investment scheme, leading to the apprehension of Kunjathbail Mujib Sayyad from Manglore, Karnataka. #Hyderabad #OnlineFraud #InvestmentScam #CyberCrimeArrest

— Deccan Chronicle (@DeccanChronicle) June 28, 2024

The thread of the Max Crypto Trading scam started to come apart when a man named Shaik Ahmed from Farooqu Nagar Village in Ranga Reddy district, Telangana, lodged a complaint. Ahmed and 51 other investors, hailing from Shadnagar and Hyderabad, had put their trust and money into this venture.

At first, the plan appeared authentic as the accused kept their word, aiming to establish trust among investors. Yet, after successfully raising a substantial sum of $16.6 million (₹1.66 crores) from 52 backers, the organizers unexpectedly shut down their platform, taking the funds with them.

Despite the victims’ efforts to reach out to the event organizers, they received no response, and the local contacts mysteriously disappeared. As a result, a report was filed under Case No. 759/2022 at Shadnagar Police Station, accusing violations of sections 420 (fraud), 406 (punishment for criminal breach of trust), and 120-B (punishment for criminal conspiracy) of the Indian Penal Code, as well as Section 5 of the Telangana State Protection of Depositors’ Funds and Establishment Act-1999. The investigation was then handed over to the Economic Offences Wing Police Station for a more detailed probe.

With the supervision of K. Prasad, Deputy Commissioner of Police (EOW) in Cyberabad, and headed by Inspector B. Narahari, the probe into the matter is currently underway. The Cyberabad Police advise the public to stay alert against such fraudulent activities. Crooks may initially provide small returns to establish trust before eventually running off with substantial amounts of money.

Read More

2024-06-28 14:12