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City techie loses Rs 18 lakh to cryptocurrency in corrupted datamining case

Wed, Jul 27, 2016, 06:03 PM
Reacting to a complaint lodged by a victim, who was working in a reputed software company that the agents of “3gcoin cryptocurrency” lured him to invest in Virtual mining firm having their website with URL: www.3gcoin.eu by offering 180 times returns in two years. Believing their version, he invested some Rs 18 lakhs in the month of January.

The complainant told the police that later on the company failed to pay the monthly returns as promised by them. When he contacted, B.M. Jagadeesha, having office in Bengaluru, who was the so-called head of operations in India, he was told that the company was registered in Germany having office in Berlin and that he would take up the matter with them and resolve his problem. But even after several months, he failed to do so.

The complainant realized that he was cheated and lodged a complaint with the Cyber Crime Police.

A special Team led by Md. Riyazuddin, Inspector, Cyber Crimes Cyberabad East, went to Bengaluru and zeroed in on B.M Jagadeesha and apprehended him. He was produced before Chief Metropolitan Magistrate there and the accused was brought to Hyderabad on transit warrant and produced in the Miyapur Court. Later he was taken into police custody and grilled meticulously.

Investigation revealed that the website www.3gcoin.eu has been registered with the #Excellent Business Centre, 4th floor Friedrichstrasse, Germany, with management team given as Thaao July (Chief Executive Officer), K. Nagarajan (Head of Administration), Adidulla (Mining Head), and Lella Coco (Finance Head).

Another office with the name of “3G MINING TECH LTD” in England and Wales with the office address #The Picasso Building, Calderdale road, Wakefield, West Yorkshire, United Kingdom, operated with five bank accounts managed by the accused.

It was also revealed that the accused flouted the website www.3gcoin.eu by showing K. Nagarajan and two fictitious names. Actually, the said Nagaraju had died in January last year, but the accused floated the company in the name of a deceased person (Nagarajan).

As per the website, the objective of the company was server mining.

Server mining is an algorithm for writing a program for cryptography, barcodes in Kilobites, Megabites, Gigabites of data).

They have decided that the value of the mining will be measured in Crypto Currency, i.e., 1 gram of virtual crypto currency is valued at 3-4 Euros. When anyone wants to create Crypto Currency i.e., 3G Coin, he should open an account in the website called www.3gcoin.gold. Then the customer need to fill a format consisting of 9 steps by entering his credentials, including bank account, Pan Number and address proof document. These credentials will be verified by the administrator.

After entering the credentials into website and after getting ID number on applicant’s email, he has to deposit Indian currency equaling 30 Euros as registration charges. The amount has to be deposited in the company account of 3G Coin Inc. For that the accounts with numbers: 015201532668 with ICICI Bank and with A/c No. 915020057965498 with Axis Bank on the name of 3G Coin Inc., in the name of K. Nagaraju, who had died long ago, were given.

Jagadeesha used to operate the accounts of the dead person Nagarajan online. There are about 500 agents, working on commission basis. The introducer will get 20% of 30 Euros as commission.

The accused promised them that the introducer will continuously get the commission on each introduction. Roughly, he has collected about Rs 2,89,12,500 in one group. Most of the amount has been distributed as commission to agents.

At the time of launching, they have declared that the value of each Crypto Coin is 30 Euros, which is equivalent to the registration charges ie 30 Euros. They have projected to the customers/ investors that, if they take one crypto coin by investing 30 Euros, they will get 128 Crypto Coins at the end of 2nd year of investment. Since the accused offered huge profit returns in two years, many people from across India got themselves registered.

During the investigation, it came to light that there are several other similar websites such as wowcoin, onecoin, richcoin, litcoin, which were all doing business online.

The case was being investigated by Md. Riyazuddin, Inspector of Police Cyber Crimes PS of Cyberabad East Commissionerate, under the supervision of Mahesh M. Bhagwat IPS., Commissioner of Police Cyberabad East, I/c of west.

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