The Central Crime Branch’s Economic Offence Wing detained a 39-year-old man on Tuesday for defrauding over 2,000 investors in a multi-crore cryptocurrency trading and chain-link operation. Ranganath D.S., the accused, created an internet firm called Digitechmark last year, promising investors huge profits.
He allegedly assured individuals that if they spent even inr 15,000 in his service, he will return them a lakh by December 2021 and a quarter-million by 2025. Those who contributed 50,000 were guaranteed 3 lakh by December 2021 and 2 crore by 2025.
“He claimed that he could make their principal grow by trading in the cryptocurrency, Tron,” a CCB officer stated. Tron is a blockchain-based decentralised network meant to manage credit sharing, payment, and other functions, as well as to exchange media assets.
Ranganath persuaded clients that Tron provided the quickest growth in the global market. To attract investors, he recruited agents to advertise his firm on social media. As the director of Digitechmark, he hosted YouTube addressing sessions and video conferences with potential clients.
He also promised clients additional rewards if they introduced new investors, depending on the amount. “Trusting him, thousands of people from Bengaluru, Hubli, Dharward, Mysore and Mangalore invested crores of rupees into the company. The accused also issued DTM tokens (his company’s cryptocurrency ) to investors as a mark of their investment,” according to the CCB.
Ranganath, a Chikkamagaluru standard seven dropout, worked as an office staff at a financial firm for a few years before starting his own company using cryptocurrencies to defraud people. “His company is unregistered,” CCB authorities asserted.
He was charged with criminal breach of trust and cheating under the IPC, as well as other provisions of the IT Act and the Prize Chits and Money Circulation Schemes (Banning) Act.