Cryptocurrency Scam in Kerala: Man Arrested for Morris Coin Fraud Scheme

Kerala Man Arrested for Operating Cryptocurrency Scam Involving Morris Coin

In a major crackdown on cryptocurrency fraud, Kerala’s district police have arrested a 36-year-old man named Nishad for allegedly orchestrating a cryptocurrency scam involving “Morris Coin.” Thousands of investors across India have reportedly been duped into the scheme with false promises of daily returns and referral benefits.

Details of the Cryptocurrency Scam

Who Is Behind the Morris Coin Scam?

Nishad, a resident of Malappuram, Kerala, and the managing director of Bengaluru-based Long Rich Technologies, is the main accused in this fraud case. The district police, led by chief U Abdul Karim and inspector P Vishnu, seized critical documents from Nishad’s residence during the investigation.

The police allege that Nishad lured investors into the Morris Coin scheme by promising high returns, only to operate what appears to be a classic Ponzi scheme.

How Did the Morris Coin Scam Work?

The scam revolved around attracting investors to deposit a minimum of 15,000 rupees (~$200) into Morris Coin, with false promises of:

• A daily return of 270 rupees (~$3.60) for 300 days.
• Additional rewards for referring others to join the scheme.

At the end of the 300-day lock-up period, investors were told they could exchange Morris Coins for other cryptocurrencies or fiat money.

However, police investigations revealed that:

• Morris Coin is not listed on any cryptocurrency exchanges, making it impossible for investors to exchange or sell the token.
• The company lacks any registered offices, raising suspicions of a fraudulent setup.
• The official ICO website for Morris Coin provides no information about the team, developers, or the project’s legitimacy.

Charges Filed Under Indian Law

The district police have charged Nishad under the Prize Chits and Money Circulation Schemes (Banning) Act, a law that prohibits illegal schemes involving money circulation and promises of quick returns.

Key Points:

• Nishad is accused of deceiving thousands of investors from across the country.
• The total amount of money defrauded runs into hundreds of thousands of dollars.
• Authorities are now reaching out to Morris Coin investors to record statements and further investigate the case.

Lack of Transparency in Morris Coin

A deeper dive into the Morris Coin project raises red flags about its legitimacy:

• The website provides no information about the team behind Morris Coin.
• There are no project details or whitepaper explaining the token’s purpose or utility.
• Promises of high and guaranteed daily returns are typical indicators of a scam in cryptocurrency schemes.

Investor Caution: Warning Signs of Crypto Scams

The Morris Coin scam highlights the risks associated with unverified cryptocurrency projects. Here are some warning signs to look out for:

1. Too-Good-To-Be-True Returns: Unrealistic promises of high daily returns are often indicative of scams.
2. Lack of Exchange Listings: Legitimate cryptocurrencies are listed on major exchanges for trading.
3. Absence of Information: Reputable projects disclose team details, roadmaps, and whitepapers.
4. Referral Incentives: Promises of extra rewards for referrals often suggest a Ponzi scheme.
5. No Registered Offices: Genuine companies are transparent about their physical operations and contact details.

What’s Next for the Investigation?

The Kerala police are actively reaching out to affected investors to gather evidence and record statements. Further investigations are underway to uncover the full extent of the fraud and trace the funds collected through the scheme.

Efforts will also be made to determine whether Nishad or his company Long Rich Technologies had any accomplices in the operation.

Final Thoughts

The Morris Coin cryptocurrency scam serves as a stark reminder for investors to exercise extreme caution before investing in digital assets. With cryptocurrency scams on the rise, it is crucial to:

• Verify project authenticity through research and independent sources.
• Avoid schemes with guaranteed high returns and referral-based incentives.
• Stick to established cryptocurrency exchanges and platforms.

Authorities are committed to cracking down on fraudulent activities, but investor awareness remains the first line of defense against scams like Morris Coin.

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.