Three arrested over cryptocurrency chain-link scam in Bengaluru

The Central Crime Branch (CCB) police in Bengaluru have arrested three persons who were allegedly running a Ponzi scheme by luring people to invest in cryptocurrency and assuring attractive higher returns.

The accused have been identified as Raghavendra, Nagaraju and Shivamurthy, all residents of HSR Layout. Joint Commissioner of Police (Crime) Sandeep Patil said, “The economic offences wing detected another Ponzi scheme/chain-link scheme in HSR Layout… (they) promised more than 20 per cent returns and assured higher returns on getting additional members. Further investigation is on.”

A police officer said, “The accused ran a firm named FOMOEX at a private hotel in Yelahanka. They claimed business presence in the USA, Singapore and China.”

The police said they had come up with a chain-link model in which members of the firm can make others join the platform and they would get commission for it. For instance, if they make a person invest 100 US dollars, the person would get 10 per cent commission on the package every month, the police added.

It was also found that the accused had earlier cheated several people in a similar chain-link scam.