The Noida Special Task Force (STF) and Sector 58 police on Friday arrested 12 people who had gathered at a hotel to launch a digital currency. Officials said that although currently there is no law allowing or prohibiting trading in cryptocurrency in India, the suspects, under the guise of launching a digital currency, were planning to engage in multilevel marketing, which is illegal.

Multilevel marketing, just like any other Ponzi scheme, is the practice of selling goods or services on behalf of a company in a system whereby participants receive commission on their sales as well as the sales of any participants they recruit.

Hemraj Meena, senior superintendent of police, Uttar Pradesh STF, said police received information that some people would be gathering at a hotel in Noida’s Sector 62 to launch a digital currency ‘Coin Cake’. “A joint team of Noida STF and Noida police conducted a raid and arrested 12 people from the hotel. Police recovered 16 mobile phones, two laptops, 30 debit cards, seven Aadhaar cards–four of which were forged– 116 visiting cards, two wristwatches, six driving licences, one Toyota Fortuner and one Tata Safari and 1.52 lakh cash from their possession,” said Meena.

Raj Kumar Mishra, additional superintendent of police, Noida STF, said most of the arrested persons previously worked in a fictitious real estate company, whose owners duped scores of investors and fled abroad in 2019. “A total of 284 cases were registered against this…

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