BEWARE!! Crypto Traders kidnapped for extortion in India!

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Illustration of bitcoin crypto currency

In two separate incidents, crypto traders were kidnapped by some police officials for extortion. In Pune, on 1st Feb, 8 people were arrested by the police in Pimpri Chinchwad including a police official. Another separate incident occurred where a Haryana cop and his 4 colleagues were arrested by Sisra Police on allegation of extortion from a Jaipur-based crypto trader.

Pune Incident details

According to Moneycontrol, 8 people were arrested by Pune Police for allegedly trying to kidnap the crypto trader and trying to extort bitcoins worth Rs. 300 crores from him. The arrested policeman has undergone training in cybercrime detection which led him to the crypto trader.

According to NDTV report, the victim Vijay Naik was abducted from Pune on January 14 and told to hand over his digital fortune and also Rs. 8,00,000 in cash.

Once the kidnappers realized that the police were on their trail, they let the victim go. The Police have taken all the 8 accused in custody.

Haryana incident details

In a separate incident, a man from Jaipur was allegedly kidnapped by police officials from Haryana to transfer roughly Rs. 9 crore from the victim to another account.

According to TOI, all the 5 accused have been arrested and the victim has also been arrested. The victim is a known proclaimed offender and has a cheating case on him.

The interest in earning money seems to grapple the people, and hence such incidents are taking place. People investing in Crypto or any other digital asset need to be careful of such malpractices and take proper precautions.

Investment Cycle in India

The Cryptocurrency craze in India is at an all time high. The new Tech savy people of India are keen on riding this cryptocurrency party and making a fortune out of it. While cryptocurrency is still not legally accepted in India, this has not reduced the interest of people investing in India.

According to Reuters, with more than 15 to 20 million crypto investors in India having a market cap of around Rs. 400 billion, the craze only seems to gather momentum as it moves forward.

Not only in crypto world, but participation in the stock market has also increased exponentially in the past one and a half years. Today more than 8 crore demat accounts have been opened, when only 3.6 crore demat accounts were present before 2019. The number of demat accounts have doubled since 2019 and they only seem to be growing. With the LIC IPO to come later this year, more demat accounts may be opened. CDSL has more than 5 crore demat accounts in operation as compared to NSDL.

This investment cycle will continue to increase in India as most of the new participants investing in India are the young population in India.

Recently, in Budget 2022, FM Nirmala Sitharam introduced a 30% tax on the sale of all types of Virtual Digital Assets. Virtual Digital Asset will include Crypto coins, NFTs, or any other digital asset. Also, a TDS of 1% on the transfer of such assets was introduced.

Since cryptocurrency is not legal in India, people should be careful when investing in such assets as this may cause a severe loss.

(Disclaimer:- Any investment you make is your decision. We don’t encourage or condone such practice. Please consult your financial advisor before making an investment decision.)

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