Cryptocurrency scam alert: Users duped out of Rs 45 lakh after investing via mining app

Police cited complaints to claim that 31 residents of Solapur, Maharashtra, were reportedly scammed of Rs 45 lakh after making deposits through a cryptocurrency cloud mining app.

A way to mine cryptocurrencies like bitcoin without manually installing and running the required hardware and software is through cloud mining. Cloud computing power is rented instead.

"The investors were asked to download the CCH Cloud Miner App and the crypto trading app. They were asked to convert their Indian currency into dollars using the crypto trading app and were made to invest in the CCH Cloud Miner App," on Tuesday, a police officer stated.

According to him, 31 persons have so far gone to the police with charges of fraud, and some of the investors initially received returns.

Police inspector Udaysinh Patil stated, "We have registered a case against three persons who had lured people to download the app and invest money under the pretext of offering hefty returns."

He claimed that the three works in the Solapur jewellery industry. Ram Jadhav, one of the complainants, stated he had invested 4.28 lakh. According to him, the app is no longer in use, and the trio's office is closed.

The issue with digital assets has repeatedly been brought up by the Reserve Bank of India.

(With inputs from PTI)