A court in Delhi has denied bail for businessman Umesh Verma, accused of operating a fraudulent cryptocurrency scheme. The court expressed concerns about the impact of such actions on the country's financial system.
Fraud Allegations Against Cryptocurrency
Umesh Verma, the founder of Pluto Exchange, was arrested in December 2020 after an investor's complaint detailed promises of monthly returns up to 30 percent on an investment of 5 lakh.
Investors' Losses and Court Response
Investigations revealed that Verma defrauded at least 61 investors with total losses nearing ₹50 lakh. The court noted that he continued collecting funds despite regulatory warnings.
Measures Against Crypto Fraud in India
India has introduced strict measures to regulate cryptocurrency transactions, including a 30 percent tax on gains and incorporation of crypto into the Prevention of Money Laundering Act. The court highlighted the need for a transparent regulatory framework.
The court’s denial of bail emphasizes the need for stringent oversight and investor protection against fraudulent schemes in the crypto industry.
