In the Indian state of Kerala, police have begun an investigation into three companies in connection with a fraud. According to law enforcement, more than 11,000 people were victims, who were offered to invest in the new cryptocurrency Morris Coin, The New Indian Express.
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The minimum investment was 15,000 rupees (~$205), police said. The scammers lured investors by offering daily returns of up to 3% on their capital for 300 days after investing in Morris Coin.
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They also promised 10 tokens after the end of the 300-day lock-up period.
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For bringing in new investors, the scammers offered a commission of 10% to 40%. Financial experts said the companies used a Ponzi scheme.
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Authorities noted that no complaints from Morris Coin investors had been received. Presumably, the scheme’s organizers won their trust by paying daily interest for a while.
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The police also filed a case against the head of the three companies involved in the fraudulent scheme — Long Reach Global, Long Reach Technologies and Morris Trading Solutions. At the home of 36-year-old Nishad K., law enforcement conducted a search and seized financial documents.
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Earlier Indian media reported that after the Supreme Court lifted restrictions on cryptocurrency trading in the country, have become more active bitcoin scammers.
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