It has been reported by a local news outlet Millennium Post that the Economic Offence Wing of the Delhi Police has launched a probe against the operators of the Pluto Exchange after 43 investors filed a complaint with the EOW.
However, Bharat Verma, the founder of Pluto Exchange, and others involved in the investment scheme allegedly lured investors said that they were running crypto trading and cryptocurrency mining operations under the company “F2poolminin.”
Similarly, Joginder Kumar, one of the 43 investors, claimed that he first met the operators of the exchange in Delhi’s Connaught Place, where they told him about the cryptocurrency scheme that would offer a return of 20–30% each month.
An alleged #crypto scam by Indian crypto exchange operators has reportedly duped investors of more than $270,000 https://t.co/UQ2ZCr1sHx — Cointelegraph (@Cointelegraph) September 22, 2020
According to a statement published by the Delhi Police, the suspects also promised Kumar an added commission if he brought more people to invest in the scheme. After not receiving any returns on his investment of over $6,500, Kumar said that he met Bharat Verma who explained the seizure of many of the company’s bank accounts and the plummeting price of Bitcoin (BTC) had forced them to not pay out the returns to the investors.
Thus, the report said that currently, Pluto Exchange has shifted its offices from India to Dubai, and according to Kumar, the director of the company has collected more than $6.8 million for the cryptocurrency business.