India clamps down on Bitcoin mine funded with bits2btc Ponzi scheme

India clamps down on Bitcoin mine funded with bits2btc Ponzi scheme

India authorities said they have raided a cryptocurrency mining operation that was allegedly funded with proceeds of bits2btc Ponzi scheme.

The mine is a 4,000 square foot complex in Dehradun.

Owners of the mines are said to be Kamal Singh, and Vijay Kumar who was arrested by Indian authorities for $14.9 million scam carried out using bits2btc, a Ponzi scheme that left many investors penniless.

According to Bitcoin.com which cited local reports, local police found “over 100” Ethereum mining rigs comprised of “high-powered computer processors, 500 graphics cards, and servers.” The mine’s owners reportedly “told curious neighbors that [the mine] was a computer processor unit with servers of a big company.”

Gainbitcoin.com. reported that through the interrogation of Mr. Singh and Mr. Kumar, police have determined that the Ethereum mining operation had been funded by the bits2btc ponzi scheme.

The website reported that The accused had elsewhere expanded their fraudulent operations, launching two cryptocurrencies, HBX and Mcap, in addition to another ponzi scheme.