60-Year-Old Man Arrested for Rs 2.5 Crore Cryptocurrency Scam in India

Umesh Verma Arrested at IGI Airport for Cryptocurrency Fraud

A 60-year-old man, Umesh Verma, was arrested at Indira Gandhi International Airport on Thursday for his involvement in a cryptocurrency scam. Verma, along with his son Bharat Verma, allegedly defrauded at least 45 investors of approximately Rs 2.5 crore through a fraudulent crypto scheme under the banner of Pluto Exchange in 2017.

Verma, a greeting card manufacturer, created a cryptocurrency Coin Zarus, marketed through the Pluto Exchange app, promising monthly returns of 20–30%.

How the Scam Unfolded

Promises of High Returns

• Verma and his son lured investors by guaranteeing monthly returns of 20–30% through investments in their crypto platform.
• Victims were persuaded to invest in Pluto Exchange, which falsely claimed to trade and mine cryptocurrencies.

Failure to Deliver Returns

• When the promised returns failed to materialize, Verma blamed Bitcoin’s market volatility as the reason for the losses.
• Verma evaded accountability by frequently changing his residence and eventually relocating to Dubai.

Police Investigations Reveal More

According to the police, Verma:

1. Operated a Ponzi-like Scheme:

   • The business operated as a chit fund, using a multi-level marketing model to recruit new investors.
   • Promised higher rewards for bringing in additional participants.

2. Sole Ownership of Pluto Exchange:

   • Verma was identified as the sole owner of the company.
   • The exchange also claimed to be engaged in crypto trading and mining through platforms like ‘F2poolminin.’

3. Established an Office in New Delhi:

   • Opened an office at Connaught Place, New Delhi, in November 2017, from where he operated the fraudulent scheme.

Previous Legal Troubles

In December 2017, Verma was arrested by the Directorate of Revenue Intelligence (DRI) for involvement in a gold smuggling case. His criminal history added to the complexity of his financial operations.

Additionally, Verma claimed to have developed India’s first mobile app for cryptocurrency transactions, which allowed users to buy, sell, and store Bitcoin using their phone numbers.

Arrest and Legal Proceedings

After evading authorities and investors, Verma returned to India, where he was arrested at IGI Airport. The police:

• Conducted extensive interrogations and detained Verma for three days to gather evidence.
• Confirmed that Verma failed to provide any credible defense for his fraudulent crypto business.

Impact on the Crypto Ecosystem

Verma’s arrest highlights the risks of unregulated cryptocurrency schemes in India. His fraudulent activities have raised concerns about the:

• Lack of investor protection in emerging markets like crypto.
• Need for stricter regulations to prevent such scams and protect investor interests.

Conclusion

The arrest of Umesh Verma for a Rs 2.5 crore cryptocurrency scam underscores the importance of vigilance in the crypto investment space. Investors must be cautious of schemes promising unusually high returns and verify the legitimacy of platforms before committing funds.

India’s crypto ecosystem, though growing, continues to face challenges from fraudulent actors. Stricter regulations and public awareness campaigns are essential to fostering trust and security in the market.

To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news, where we delve into the most promising ventures and their potential to disrupt traditional industries.