Even without clear cryptocurrency regulations, India is becoming home to nerve-racking cryptocurrency frauds lately. But this time, it is a crypto-crime of unparalleled proportions. Well, the local media is reporting that members of the Indian National Congress, the main opposition party, is accusing the ruling Bharatiya Janata Party (BJP) of taking center stage in a bitcoin fraud.

Allegations

A leader of the opposition party told newsmen that the Gujarat’s Crime Investigation Department (CID) estimates the total sum involved over 50 billion rupees (approximately $763 million). Spokesman of the National Congress, Shakisinh Gohil, alleges that the members of the ruling party converted unaccounted cryptocurrency to rupees worth 88,000 crore (approx $12 billion).

Apart from allegedly getting involved in bitcoin fraud, the main opposition is also throwing around other accusations. It is also accusing members of the ruling party of kidnapping a real estate business mogul in April 2018. Known as the Congress, the opposition party disclosed that the CID uncovered the crimes and are already investigating them. Mr. Gohil revealed that Nalin Katadiya, the BJP leader, is still at large.

The Full Story

According to the claims made by the leaders of the Congress, a Surat-based business mogul and promoter of BitConnect, Shailesh Bhatt, was kidnapped by the police and made to transfer bitcoin worth 200 BTC at gunpoint. These findings are based on an earlier arrest made by the police. This happened after launching an investigation into a cryptocurrency theft which involved eight police officers in April. Apart from asking the business mogul to transfer the bitcoins, his abductors also compelled him to pay Rs 32 crore (approx $4.8 million) in ransom to secure his release.

The director general of police (CID), Ashish Bhatia, told the press that the businessman’s abduction was on February 11th. After transferring the sum in Bitcoin, the abductors freed him. They did so on the assurances that he would also pay the balance of Rs 32 crore through hawala, an illegal money transfer network popular in India.

Response To Allegation

However, the BJP responded instantly, denying all the allegations leveled against the party. The ruling party nevertheless challenged the Congress to file a case against the ruling party in court. They are labeling the allegations as “laughable.”

Central Bank Reaction

The Indian Central Bank is on a quest to curb the spate of crypto frauds. Currently, they are banning the country’s banks from performing all cryptocurrency-related transactions. This new rule, which came into effect July 5th, will ensure that banks stop facilitating all conversions involving crypto-fiat transactions.