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A resident of Mangalore, Karnataka, has been apprehended for orchestrating a cryptocurrency Ponzi scheme, defrauding over 50 individuals. Kunjathbail Mujib Sayyad was arrested in Hyderabad for his involvement in the "Max Crypto trading" scheme, which promised substantial returns through the MAX App.
Kunjathbail Mujib Sayyad Arrested in Hyderabad for Orchestrating $200K 'Max Crypto' Ponzi Scheme
According to a local report (via Crypto News), Kunjathbail Mujib Sayyad has been apprehended by law enforcement in Hyderabad for his involvement in the "Max Crypto trading" Ponzi scheme.
The investigation was initially initiated in late 2022. At the time, victims claimed that Sayyad, along with other accomplices, made promises of substantial returns on investments.
The fraud was conducted through the MAX App, an Android application. The scheme guaranteed returns within 150 days of investment.
Additionally, users were granted a two percent commission for each new investor they recruited, which would be increased for larger quantities.
The scheme's proprietors claimed to be associated with prominent cryptocurrency merchants and misled investors by claiming their headquarters were located in Ajman, United Arab Emirates.
The organization implemented neighborhood events to advertise its initiative. Nevertheless, the fraud was conducted online, without physical locations in India.The victims reported that the scheme initially distributed returns in U.S. currencies. Fraudsters frequently employ this strategy to establish credibility.
The fraud was able to attract small-time investors and daily wagers who were anticipating a significant increase in their investments. Nevertheless, the company and its application vanished within the first 50 days of its debut.
52 Victims Defrauded of $200K in 'Max Crypto' Scheme; Main Suspect Faces Multiple Charges
Fifty-two victims contributed a total of INR 1.66 crore, which is equivalent to approximately $200,000, to the scheme. The local police initially registered the case in response to numerous complaints. Subsequently, it was addressed to the Economic Offences Wing of the Cyberabad police.
Sayyad is currently being prosecuted under Section 420 of the Indian Penal Code for the fraudulent and dishonest solicitation of property. Furthermore, he is accused of criminal breach of trust under Section 406, which entails the misappropriation of property entrusted to him and allegations of being a member of a criminal conspiracy under Section 120B.
At the time of this writing, his accomplices are still at large.
Scams of this nature are prevalent in developing countries such as India. Scammers frequently exploit the general populace's lack of comprehension and the hoopla surrounding cryptocurrencies.
Similarly, earlier this month, India's Enforcement Directorate (ED) seized $180 million in assets from an investment group purportedly a Ponzi scheme.
The watchdog had previously charged 299 entities with operating a fraudulent scheme disguised as a cryptocurrency mining investment firm.
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