Same promoter, one more crypto fraud

AHMEDABAD: Another cryptocurrency scam has emerged in Surat, as CID (crime) has named Divyesh Darji, the promoter involved in the alleged BitConnect cryptocurrency scam, as being involved in cheating people of lakhs of rupees after getting them to invest in a cryptocurrency instrument called ‘Regal Coin’ after promising them astronomical returns.
Darji, a resident of the Adajan area of Surat, is facing trial in the Rs 22,000 crore Bitcoin scam.His name had also cropped up in another Rs 1,000 crore scam through another cryptocurrency instrument called ‘Dekado coin’.
CID officials said that Darji in September 2017 was offering short term returns of 5,000% on investments. He had told his investors to buy the cryptocurrency instrument ‘Regal Coin’ which he promised would turn $2 into $100 in a short while. He had promised the investors that Regal Coin investments would give better returns than Bitcoin.
“Darji had told his investors that they needed to stay invested just for 99 days. He also promised to pay them returns on their principal according to profits on robotic trading, besides 1% to 1.6% referral bonuses every 11 days,” said a CID official.
The scam surfaced after a Surat resident, Vishal Savalia, approached CID alleging that he had lost Rs 17.50 lakh in this Regal Coin scam. “Savalia said the gave the money to Darji’s daughter, Dimki, through another accused, Darji’s aide, Ramdayal Purohit. He said that Dimki herself downloaded the Regal Coin app on Savalia’s phone and got him registered on its website,” said a CID official.
Two other persons, Rajesh Mania and Kirit Parmar, also invested Rs 10.50 lakh and Rs 17.50 lakh in this cryptocurrency instrument. The price of Regal Coin had hit $100 once, but later the company later folded up after pocketing nearly Rs 45 lakh.
A CID official said the estimated total value of the scam is in crores.
At present, only one accused, Purohit, has been arrested. Darji, who was released on bail by the Gujarat high court a month ago, is on the run. CID registered a complaint against Darji, his daughter, Purohit and another aide, Mehul Pacchigar, for cheating and violation of the Gujarat Protection of Investors’ Deposits Act and The Prize Chit Money Circulation Scheme Banning Act.