Three Accused Arrested In The Indian Chainlink Scam

In recent times, the digital currency has often been associated with several scams, which is one of the reasons for it not getting recognized as a legal tender. One such scam is the cryptocurrency chainlink scam in an Indian state. The CCB (Central Crime Branch) police of the state have arrested 3 persons who were claimed to operate a Ponzi Scheme by attracting people to invest in digital currency to assert higher returns.

Other than that, another South India based state is also the victim of a Bitcoin scam that was unraveled recently. The state’s opposition has escalated this case of a computer hacker for this assumed digital currency transaction associated with “influential politicians.”

What Was The Cryptocurrency Scam?

The hacker, Srikrishna Ramesh was arrested on November 4, 2021, in a drug case. Ramesh is known to have transferred money to Robin Khandelwal, who ran a Bitcoin trading company, to buy drugs via the hidden internet.

The arrest followed the unraveling of a series of crimes. The cops found Ramesh to be associated with various other crimes, that includes the hacking of an e-procurement cell. Moreover, the police recovered 31 BTCs that are priced at 9 crores approximately from the claimed hacker.

As per the reports, the Enforcement Directorate is presently investigating all the illegal wealth of the accused and the draining of Rs 11.5 crore from the e-procurement cell of the e-governance center of the latter state. Now let us have a look at the chainlink scam. 

The Chainlink Scam

The accused were identified as Nagaraju, Raghavendra, and Shivamurthy, all of which resided in the HSR Layout. According to the Joint Commissioner of Police (Crime),

“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.”

He further said that,

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

As per the police, they have arrived with the chainlink model where the members of the firm can make other investors join the channel as they would receive a commission for it. For example, if they successfully make a person invest 100 US Dollars, the person would receive 10% commission on this package.

Is Chainlink A Cryptocurrency?

Chainlink is a digital currency that emphasizes to incentivize a global channel of computers to offer real-world, reliable, data to smart contracts operating on top of blockchains. Every oracle inside the chain link network is incentivized to offer precise data since a reputation score is provided to each. So if you are wondering is chainlink a good investment, then yes it is.

The Bottom Line

The cryptocurrency scams are very common these days. With the advent of technologies, more loopholes are created which the scammers take advantage of. The above is one such instance, the chainlink scam where the scammers collected money from investors using the chain link.

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