The Criminal Investigation Department (CID) in Gujarat, India, has started investigations of a multi-million dollar cryptocurrency scam, involving a BitConnect promoter.
The scam was discovered after on of the investors approached the CID saying that he had lost around $26,783. The estimated amount of the scam reaches into the tens of millions of rupees.
Divyesh Darji, a promoter of now-defunct cryptocurrency investment program BitConnect, encouraged people to invest into “Regal Coin,” promising unrealistic ROI — 5,000% on investment. Darji offered potential investors to buy the coin with an investment of $2 to get $100 on each Regal Coin
Darji was arrested for scamming investors at the end of August 2018. Darji reportedly said that he had been the India head of BitConnect. The CID claims that staff at the BitCoinnect office in Surat admitted that promoters had amassed “crores of rupees from thousands of investors.”