Recently, the Maharashtra government ordered a special investigative team (SIT), headed by the director general of the economic offences wing (EOW), to investigate all cases related to Bitcoin fraud reported in that state. The government is already issuing notices to companies found with involvment in Bitcoin fraud and any other forms of cheating.
The Maharashtra government notes that they are willing to ask the help of the Enforcement Directorate if needed. The Nationalist Congress Party legislator, Hemant Takle, called for national attention on the same.
The government says that they are looking at all reported cases. Additionally, they are launching different stages of carrying out the investigation. Kesarkar says the EOW will attach domestic properties of the different Bitcoin companies which have been identified to be cheating in the ongoing probe. Kesarkar added that, “No time frame has been given to the SIT to complete the probe. Each case is at a different stage of investigation and will take its own time.”
The government also noted that even though the Reserve Bank of India was not recognizing digital currencies like Bitcoin and Ethereum, it has not termed the digital currencies as illegal. According to the note, “Even though the Reserve Bank of India has been issuing circulars cautioning the public against digital currencies the RBI has not termed them as illegal.”
Other Companies Under Fire
The investigation started after cases of Bitcoin probes were discovered in Thane, Pune, Yavatmal, and Kolhapur involving three companies. According to the report, one company called ZipCoin promised 15% returns to investors in form of Bitcoin. The company is said to have cheated and conned 17 investors. There have been several arrests to people linked with the company.
Another company by the name Gain Bitcoin Company is said to have cheated many investors, especially in Pune and Yavatmal. Three arrests have already been made to people linked to the company. The search is still on to arrest other accused people. The last accused company is called Flintstone Technology. With these companies, many cases of fraud and theft have been reported in Thane and so far police have arrested two people and recovered huge sums of money. The police department added that they will be making more arrests after concluding the investigation.
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