Another PONZI scheme money frozen in bank account revealed

Hypnosis00

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Quote from: ivaf on October 07, 2019, 02:03:48 AM

Well, great! Here is a prime example of what the lack of regulation can lead to.
Although in this case, it seems to me that the victims themselves need to take the initiative. To demand the return of funds not stolen from them, but to demand the return of information stolen from them. After all, do not forget that blockchain is a database, i.e. information.

Does regulation place a big role in crypto? Cause even though we have that kind of regulation but couldn't say that we are free from those scamming and Ponzi scheme in here. Definitely, they still are existed as long as these scammers want to do it. They have a smart ass, as we know it and they are smarter to think that regulation could stop them either in the future that is why they take advantage first.

Indian government makes it right and what they do is the benefits of the entire market as well.

passwordnow

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Quote from: magneto on October 07, 2019, 03:11:05 AM

I do think that the Indian government should make some exception to the legislation in order to refund the victims, though. Because after all, even though getting scammed is somewhat their fault, a ponzi scheme at the end is illegal and its victims should be reimbursed.

This should be the action that the Indian gov't would do. But I don't think that they will do it, returning "illegal" money on their perspective won't work. They have all the rights to do with the seized money like what happened to the funds that were seized during the Silk Road days.

Quote from: ivaf on October 07, 2019, 02:03:48 AM

Well, great! Here is a prime example of what the lack of regulation can lead to.
Although in this case, it seems to me that the victims themselves need to take the initiative. To demand the return of funds not stolen from them, but to demand the return of information stolen from them. After all, do not forget that blockchain is a database, i.e. information.

The question, Is the Indian gov't will cooperate?

coinfinger

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Quote from: rosezionjohn on October 06, 2019, 08:35:49 PM

Quote from: DaMut on October 06, 2019, 01:25:19 AM

Quote from: rosezionjohn on October 05, 2019, 08:43:56 PM

The Indian government is treating Bitcoin as illegal money at the moment and I would be really annoyed if I was one of the victims there. Imagine the relief you they got upon hearing the good news and then the disappointment that you can't have it.

I know about this, but the question here is how could they be able to run the Ponzi Scheme if the government is banning it there?

I can only guess. Maybe there are people who are too greedy and wanted to make quick money by fooling others? The best way to find out is personally asking the scammers.

I would not really call those investors fools, seems you have very less activities when it comes to investment, because if you really do invest, and you come across some of these projects every day, you will realize that it is not so easy to actually discern some of these projects, pay less attention to the fact that the news is just calling it Ponzi scheme now, they are calling it Ponzi scheme because it has already turned scammed project, but the project itself would never come as form of Ponzi at the initial stage.

When you read some of their whitepaper, you could see that they have very strong product to offer, and talking of team, they have very strong team which is why government could even catch up on them easily, but it is a good thing though that government is active now in going after these known scammers.

magneto

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Quote from: jessyj48 on October 05, 2019, 01:51:36 AM

Cryptographic money worth $1.2 million that was seized from a Ponzi plot by Indian police can't be gotten to and came back to dazed financial specialists since Indian financial laws deny the treatment of virtual monetary forms.

Linke to full news
https://www.cryptoglobe.com/latest/2019/10/seized-ponzi-funds-remain-stuck-in-frozen-indian-bank-account/?amp=yes

This is cause for concern.

If you are going to invest anything into cryptos in a country which has explicitly stated that institutions are not allowed to handle crypto transactions, and you choose to dumbly trust a third party to be holding your investments - then you should be prepared for the risks.

I do think that the Indian government should make some exception to the legislation in order to refund the victims, though. Because after all, even though getting scammed is somewhat their fault, a ponzi scheme at the end is illegal and its victims should be reimbursed.

ivaf

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Well, great! Here is a prime example of what the lack of regulation can lead to.
Although in this case, it seems to me that the victims themselves need to take the initiative. To demand the return of funds not stolen from them, but to demand the return of information stolen from them. After all, do not forget that blockchain is a database, i.e. information.

Bitfling

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Quote from: efxtrader on October 07, 2019, 12:49:25 AM

Quote from: Tipstar on October 06, 2019, 09:57:10 AM

Quote from: Ucy on October 06, 2019, 09:52:13 AM

The article is a bit confusing. Is the government calling cryptocurrency ponzi scheme hence the seizure or is the government talking about an actual ponzi scheme? The government even banned bank from dealing with Virtual currency. I wonder what virtual currency they are talking of.

According to the news I read, the police busted the operator of the ponzi and confiscated the crypto probably bitcoin. As the trade of bitcoin is not legal they are not sure what to do with it and how to find the claims of investor to be legit and on what form to compensate them. They are trying to compensate the investors for the loss and they have taken help from the team of now non-existent crypto exchange called Koinex.

It is possible that what is being sold is not bitcoin on the cryptocurrency market. Some ponzi schemes use the name bitcoin as a mask even though the purpose is only to cheat and maybe like a money game

This often happens in areas where internet access is poor so access to information about cryptocurrency is limited. Indeed what happens is that people use the name bitcoin but actually don't have even one bitcoin to sell.

efxtrader

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Quote from: Tipstar on October 06, 2019, 09:57:10 AM

Quote from: Ucy on October 06, 2019, 09:52:13 AM

The article is a bit confusing. Is the government calling cryptocurrency ponzi scheme hence the seizure or is the government talking about an actual ponzi scheme? The government even banned bank from dealing with Virtual currency. I wonder what virtual currency they are talking of.

According to the news I read, the police busted the operator of the ponzi and confiscated the crypto probably bitcoin. As the trade of bitcoin is not legal they are not sure what to do with it and how to find the claims of investor to be legit and on what form to compensate them. They are trying to compensate the investors for the loss and they have taken help from the team of now non-existent crypto exchange called Koinex.

It is possible that what is being sold is not bitcoin on the cryptocurrency market. Some ponzi schemes use the name bitcoin as a mask even though the purpose is only to cheat and maybe like a money game

NathanJB

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Quote from: jessyj48 on October 05, 2019, 01:51:36 AM

Cryptographic money worth $1.2 million that was seized from a Ponzi plot by Indian police can't be gotten to and came back to dazed financial specialists since Indian financial laws deny the treatment of virtual monetary forms.

Linke to full news
https://www.cryptoglobe.com/latest/2019/10/seized-ponzi-funds-remain-stuck-in-frozen-indian-bank-account/?amp=yes

Wait a minute, so what will happen now to that big amount? Will the Indian Police just seize them and leave them for nothing simply because there is no law that supports it? What about the people who are victims of that ponzi?

The US and other governments have also seized Bitcoin and other cryptos in the past and they ended up auctioning them off to compensate the victims. And if I am not mistaken there is also no explicit law in the US supporting Bitcoin. I hope the Indian government can find a way to dispose them and pay the victims accordingly.

Wintersoldier

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Quote from: rosezionjohn on October 05, 2019, 08:43:56 PM

Quote from: DaMut on October 05, 2019, 04:55:05 AM

Quote from: jessyj48 on October 05, 2019, 01:51:36 AM

Cryptographic money worth $1.2 million that was seized from a Ponzi plot by Indian police can't be gotten to and came back to dazed financial specialists since Indian financial laws deny the treatment of virtual monetary forms.

They're able to seize it but not able to return it to its rightful owners because of the law. What an ironic, what is the point seizing it if they are not able to protect the interest.

The Indian government is treating Bitcoin as illegal money at the moment and I would be really annoyed if I was one of the victims there. Imagine the relief you they got upon hearing the good news and then the disappointment that you can't have it.

Sadly, it doesn't adhere to the jurisdiction of india to convert the seized cryptocurrency into rupees. What they've did was the best, to freeze the account until such law allows the money to be distributed to the victims. But still, it isa big money, india should not forever freeze it. I hope they just invest it on bitcoin and its a win win situation now and then.

rosezionjohn

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Quote from: DaMut on October 06, 2019, 01:25:19 AM

Quote from: rosezionjohn on October 05, 2019, 08:43:56 PM

The Indian government is treating Bitcoin as illegal money at the moment and I would be really annoyed if I was one of the victims there. Imagine the relief you they got upon hearing the good news and then the disappointment that you can't have it.

I know about this, but the question here is how could they be able to run the Ponzi Scheme if the government is banning it there?

I can only guess. Maybe there are people who are too greedy and wanted to make quick money by fooling others? The best way to find out is personally asking the scammers.

Quote from: DaMut on October 06, 2019, 01:25:19 AM

and the government said they are banning cryptocurrency to protect the interest and now something came up there and after closing the Ponzi Scheme they did not return the money.
how it is considered as protecting the interest if they do not know how to make a decision regarding investors money?

It is the duty of the government to go after scammers and seize or recover assets to protect the fooled investors. It just so happen that bitcoin legality is still unclear there. If it was physical cash that was recovered, we won't be having this discussion.

TastyChillySauce00

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Quote from: DaMut on October 05, 2019, 04:55:05 AM

Quote from: nreal on October 05, 2019, 04:46:55 AM

This case is nothing compared to ponzi projects in China recently, when the market showed positive signs, the fraud also increased. dismantling hundreds of millions of dollars of BTC made BTC from $ 13k9 to $ 9k

For real? The Ponzi scheme that caused the price to go down from $13.000 to $9.000, Are you talking about $3 Billion Ponzi Scheme PlusToken?
is this https://www.financemagnates.com/cryptocurrency/news/3-billion-chinese-ponzi-scheme-is-dumping-btc-on-major-exchanges/?
or something else that I never heard of before? the news said it was $3 Billion, not hundreds of millions.
I thought the recent dump was caused because people were disappointed by Bakkt performance.

Quote from: jessyj48 on October 05, 2019, 01:51:36 AM

Cryptographic money worth $1.2 million that was seized from a Ponzi plot by Indian police can't be gotten to and came back to dazed financial specialists since Indian financial laws deny the treatment of virtual monetary forms.

Linke to full news
https://www.cryptoglobe.com/latest/2019/10/seized-ponzi-funds-remain-stuck-in-frozen-indian-bank-account/?amp=yes

They're able to seize it but not able to return it to its rightful owners because of the law. What an ironic, what is the point seizing it if they are not able to protect the interest.

The point should be to secure the funds from the scammers

the only possible thing why indian government doesn't even wanna create a deal with virtual crypto caused by it's so difficult to prove the ownership of such amount.

The participants of that ponzi scheme may come from various country. that needs more effort to do that and this is based on my opinion only.

The regulation should become another reason as you said.

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Quote from: Ucy on October 06, 2019, 09:52:13 AM

The article is a bit confusing. Is the government calling cryptocurrency ponzi scheme hence the seizure or is the government talking about an actual ponzi scheme? The government even banned bank from dealing with Virtual currency. I wonder what virtual currency they are talking of.

According to the news I read, the police busted the operator of the ponzi and confiscated the crypto probably bitcoin. As the trade of bitcoin is not legal they are not sure what to do with it and how to find the claims of investor to be legit and on what form to compensate them. They are trying to compensate the investors for the loss and they have taken help from the team of now non-existent crypto exchange called Koinex.

Ucy

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The article is a bit confusing. Is the government calling cryptocurrency ponzi scheme hence the seizure? Or is the government talking about an actual ponzi scheme? The article even says the government banned national banks from dealing with Virtual currency. I wonder what virtual currency they are talking of.

Hypnosis00

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Quote from: Bttzed03 on October 06, 2019, 06:36:00 AM

It must be a headache on the part of the Indian police to not be able to return the seized assets to their rightful owners due to some questionable legality of bitcoin there.

Quote from: DaMut on October 06, 2019, 01:25:19 AM

Quote from: rosezionjohn on October 05, 2019, 08:43:56 PM

~snip

I know about this, but the question here is how could they be able to run the Ponzi Scheme if the government is banning it there?

This is like asking how could someone steal a food if it is not allowed there.

For some reason, they need to seize what they believe it was coming from illegalities and it is one of their duties also.
https://www.lawtoncates.com/blog/if-the-police-take-your-property-can-you-get-it-back

Whether we like it or not, and even we don't think that is wrong but they are actually right and the Ponzi scheme is obviously illegal. Their money will surely be freeze or it will turn over into a particular department for proper perusal.

Bttzed03

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It must be a headache on the part of the Indian police to not be able to return the seized assets to their rightful owners due to some questionable legality of bitcoin there.

Quote from: DaMut on October 06, 2019, 01:25:19 AM

Quote from: rosezionjohn on October 05, 2019, 08:43:56 PM

~snip

I know about this, but the question here is how could they be able to run the Ponzi Scheme if the government is banning it there?

This is like asking how could someone steal a food if it is not allowed there.

DaMut

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Quote from: rosezionjohn on October 05, 2019, 08:43:56 PM

The Indian government is treating Bitcoin as illegal money at the moment and I would be really annoyed if I was one of the victims there. Imagine the relief you they got upon hearing the good news and then the disappointment that you can't have it.

I know about this, but the question here is how could they be able to run the Ponzi Scheme if the government is banning it there? and the government said they are banning cryptocurrency to protect the interest and now something came up there and after closing the Ponzi Scheme they did not return the money.
how it is considered as protecting the interest if they do not know how to make a decision regarding investors money?

Periodik

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Quote from: rahmatullah9305 on October 05, 2019, 02:11:02 AM

maybe this is the umpteenth time, Indian Police, specifically tasked with dealing with cyber crime, in December 2018 has seized 452 Bitcoin worth $ 1.8 million and now Indian police again seized $ 1.2. The Bitcoin seizure came from one of the suspects involved in the Ponzi cover case. The government's weak attitude, coupled with the continuing delays in the fate of the cryptocurrency, further weaken the scope of crypto ecosystem maturity in India.

What you are saying is rather sad, especially because many Indians are active in the crypto community. This will really hamper their crypto activities. Do you happen to be an Indian?

The governments are seizing huge treasures in these cases. Although that Ponzi case is more than a valid reason for the police to intervene and stop its operation, I am afraid that the seized amount would not go back to their owners. I hope that the leadership of your country will soon give more tolerance to Bitcoin and accept it eventually.

tsaroz

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The related ponzis were Gain bitcoin and Cloud Miners. Hope the Koneix team would be able to help police return back the coins to the respective owners.

rosezionjohn

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Quote from: DaMut on October 05, 2019, 04:55:05 AM

Quote from: jessyj48 on October 05, 2019, 01:51:36 AM

Cryptographic money worth $1.2 million that was seized from a Ponzi plot by Indian police can't be gotten to and came back to dazed financial specialists since Indian financial laws deny the treatment of virtual monetary forms.

They're able to seize it but not able to return it to its rightful owners because of the law. What an ironic, what is the point seizing it if they are not able to protect the interest.

The Indian government is treating Bitcoin as illegal money at the moment and I would be really annoyed if I was one of the victims there. Imagine the relief you they got upon hearing the good news and then the disappointment that you can't have it.

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These schemes were always and everywhere. Now came to the world of cryptocurrency. Their detection creates a serious information resonance in the crypto community, and this in turn affects the price. It is a pity that we still observe such schemes.

Topic: Another PONZI scheme money frozen in bank account revealed (Read 297 times)