Exposed Cryptocurrency and Renewable Energy Scam
Binance and Delhi Police Bust Complex Scheme By Sujeet Rajan Cryptocurrency exchange Binance has partnered with Delhi Police in an operation to take down a scam involving a fraudulent entity named “M/s Goldcoat Solar.” It was reported to have operated a scam on investors, falsely claiming to be involved with India’s renewable energy sector and promising them large returns through investments in solar energy projects. Consequently, many were arrested, and law enforcement was in a position to seize more than $100,000 in Tether USDT, a popular stablecoin, Inc42 reported on Tuesday, Oct. 15.
Misleading Claims and Investor Fraud
The fraudulent scheme was based on the fake claim that “M/s Goldcoat Solar” had obtained rights from India’s Ministry of Power to help further the country’s solar power capacity. Actually, it is an ambitious aspiration for India to have 450 gigawatts of solar power capacity by the year 2030, and these scamsters used this initiative to lure investors. They promised attractive returns on investments and aligned their fictitious business with India’s renewable energy goals to appear legitimate.
In their quest to appear credible, they spread their misleading claims by impersonating high-ranking officials and then broadcasting this to users on social media, making false claims about their high-end connections. They created phony earnings reports and testimonials from supposed past investors to further gain the trust of potential victims.
Complicated Web of Deception
It tried as much as possible, in carrying out the scam, to make sure their identities were well hidden, just like the illegal activities in which they were involved. Several SIM cards were activated under fake identities, with some even being sent overseas. This set several degrees of complexity toward tracking down the individuals involved.
The money received from the unsuspecting investors was laundered through various bank accounts and later converted into cryptocurrency, making tracking even more complex. These were sophisticated means of concealing money that made the scam hard to untangle.
Binance’s Crucial Role in the Investigation
For this much-needed analytical support, Binance has played an important role in helping the Delhi Police. Binance helped trace financial transactions that were connected to the scam using its resources. This cooperation between Binance and the local authorities marks the continued effort of the exchange to comply with Indian regulations following its recent registration as a reporting entity with India’s Financial Intelligence Unit.
The operation is yet another in the series of crackdowns on fraudulent activities within the crypto space, especially in India, where the space has been experiencing tightened regulations in recent months in order to curb illegal platforms.
