Multiple individuals were arrested by Indian police for impersonating a government-backed solar power program that asked for investment in exchange for returns. With assistance from crypto exchange Binance, the Delhi Police seized $100,000 worth of Tether, the exchange confirmed in a blog post.
The fraudsters claimed to have secured rights from the Indian government’s Ministry of Power to expand the nation’s solar power network. Saying it was trying to help the country reach its renewable energy goals, the fake company raised funds from individuals who believed they’d receive a share of the firm’s profits moving forward. Of course, this was all a lie.
Promoting the company known as “M/s Goldcoat Solar” through social media, the scammers impersonated high-level government figures and showed counterfeit proof-of-earnings from alleged previous investors.
The malicious group operated using SIM cards activated using the forged details of innocent individuals, according to police. This allowed for a wide-spread network to operate freely while hiding their true identities.
Money sent by victims was funneled through multiple bank accounts with a portion being converted into cryptocurrency. It’s at this point Indian police asked for Binance to provide analytical and technical support. The collaboration eventually led to the seizing of $100,000 worth of crypto assets—although, this only represents a fragment of what was stolen.
“Binance has been conducting sharing sessions with global law enforcement agencies, and this case highlights the positive outcomes of these collaborations.” Jarek Jakubcek, Head of Law Enforcement Training at Binance, said in a release. “By connecting with law enforcement agencies, we can provide timely and crucial support in financial investigations and we will continue to do so to help combat financial crimes.”
This isn’t the first public case of Binance helping bring justice to a criminal case.
Just last month, the exchange assisted Indian law enforcement in the investigation of four individuals suspected of defrauding victims of $47.6 million and laundering it using cryptocurrency. The group operated an online betting and gaming app that trapped users’ funds, leaving them unable to withdraw. Binance’s Financial Intelligence Unit (FIU) provided technical expertise to help track the movement of crypto assets.
Before that Binance worked with Indian authorities to freeze millions of dollars linked to the fraudulent digital investment scheme known as the E-Nugget scam. The application fronted as a gaming platform that drew users in with the promise of outlandish investment gains. Indian authorities said that E-Nugget abruptly shut down its operations and did not let users withdraw their funds.
Edited by Stacy Elliott.
