Odisha Police Nab Con Artist Duo in Cryptocurrency Scam

In Odisha, the Economic Offences Wing of Odisha Police apprehended two fraudsters for swindling numerous investors in Odisha and Maharashtra. The duo allegedly lured victims to invest in cryptocurrency schemes promising high returns. Prime accused Ved Prakash, a former Rajasthan Police Constable, and Odisha head Sudhir Patel were arrested for duping investors of over Rs 14 crore.

Economic Offences Wing of Odisha Police Arrests Fraudsters Involved in Cryptocurrency Investment Scam

Bhubaneswar, April 16: The Economic Offences Wing (EOW) of the Odisha Police has apprehended two individuals, Ved Prakash and Sudhir Patel, for perpetrating a fraudulent scheme that targeted investors in Odisha and Maharashtra by enticing them with high returns on cryptocurrency investments.

According to EOW sleuths, prime accused Ved Prakash, a former constable in the Rajasthan Police, was apprehended on April 10 from Anupgarh, Rajasthan. Prakash had been dismissed from service after five years due to misconduct and dereliction of duty.

Sudhir Patel, the Odisha-based head of the operation, was arrested on April 14 in Sundargarh, Odisha.

The arrests stem from a complaint filed by Prem Sagar Khamari, a victim who lost over Rs 48 lakhs in the fraudulent scheme. Khamari received a mere Rs 20,000 against his investment.

Khamari's complaint alleges that the accused lured investors, primarily in western Odisha, into investing in various crypto schemes, including ENG Crypto, Entice Capital, USDT Club, ADS Exchange, and CRIT 11, promising high returns and even doubling their investments. However, the accused neither invested in cryptocurrency nor returned the funds to the victims.

EOW sources revealed that in 2022, the accused and their associates conducted promotional events in various parts of Odisha. They targeted victims, many of whom were unfamiliar with computers, with misleading brochures and leaflets, promising quick and substantial returns on cryptocurrency investments. Victims were also incentivized to attract more investors.

The fraudsters used the funds collected from new investors to pay promised returns to existing investors, a scheme known as a Ponzi scheme. The EOW estimates that the duo defrauded approximately 500 investors in Odisha, amounting to over Rs 15 crore. The accused also victimized several individuals in Maharashtra.

The EOW has stated that the Maharashtra Police will be informed about the scam and the perpetrators. On Monday, Prakash and Patel were presented before the designated court under the Orissa Protection of Interests of Depositors (OPID) Act, Cuttack.

The incident serves as a stark reminder of the risks associated with cryptocurrency investments and the importance of due diligence before investing. Investors are urged to exercise caution and thoroughly research the credentials of investment platforms and individuals offering high-yield returns.