If there ever begins a debate over the extent to which someone can go in order to make something illegal sound legitimate, this incident will emerge as one of the biggest examples. The perpetrators of a major cryptocurrency scam busted recently in Thane went to the extent of petitioning against RBI in Delhi High Court to make their activities sound legitimate to their customers. Moreover, they also possessed fake identity cards to pose themselves as officials of Union Finance Ministry so that they sound as legitimate as possible.
The shocking findings have been revealed recently from investigation of 500 crore MoneyTradeCoin (MTC) scam busted by Mumbai Police in Thane. The scam was organized by The Flintstone Group, a company which had registered to operate as a real estate firm. However, instead of venturing into real estate business the company created a crypto token called MoneyTradeCoin (MTC) and lured people into investing as much as 500 crore INR in the coin. It was at this stage when company’s MD Amit Lakhanpal posed himself as an official of Union Finance Ministry to make his company sound legitimate. His efforts worked and over 25,000 people invested in his MTC token.
Then came the banking ban of RBI. Flintstone filed petition against RBI’s ban in Delhi High Court to give a sense of even more legitimacy to its operations. However, the company could never give returns of even a penny to its investors. That’s when things went awry and company’s investors filed a complaint against it in police station. The police raided company’s office premises, but by then Lakhanpal and other management officials of the company had fled the country sensing action from authorities. Therefore, the police had to arrest only some lower-level employees of the firm. Amit and other masterminds of scam remain on the run.
The elaborate operations of the company and their scope are still mystery. Technical details, bank accounts involved and influential people linked to Lakhanpal all are not known at this point. Perhaps they can be known only after Amit himself is arrested.