India police busted bitcoin fraud Gang

India police busted bitcoin fraud Gang

This year the price of bitcoin stunning rally attracted many new people into encryption monetary areas, but many people just want to earn quick money, and do not want to further understand their contact areas. This situation naturally attracted criminals use encryption money to engage in illegal activities, is a recent example is India destroyed a bitcoin fraud gang.

The local bitcoin fraud Gang

India’s Uttar Pradesh SWAT team (STF) announced that its recently destroyed a local human target interested in trading and bitcoin gangs. The criminals were accused of using Localbitcoins service to find the victim, to provide price discounts for them, they send to fiat money, but not the delivery of bitcoin. Police said they received a report for more than the same kind of crime, so it is urge them to take action destroyed the criminal gang.

STF network department superintendent TriveniSingh said:

“Some websites both parties can exchange encrypted currency. This gang of criminals will buy bitcoins at low prices to lure traders, sometimes turn to some bitcoin traders account to win their trust.”

Singh added:

“After that, when traders require a greater number of bitcoin, fraudsters will come into legal tender they opened to cheat fake bank account. Then all the money extracted from a bank account, and then disappear.”

Unintended consequences

Although in this case the police took action to protect bitcoin investors, but this kind of cases continued to occur in India is likely to be caused by the authorities. This is because the country’s bitcoin exchanges are currently facing severe threat against the government, government agencies will investigate the exchange records, which may contribute to the high net worth individuals tax.

According to the trading volume, the current India demand for bitcoin is booming, people may take it as a wedding gift. If the legitimate online exchange because of the heavy regulation and bear heavy burden, or simply do not allow free operation (which is what some fear might happen), then offline transactions will fill this gap.

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