Indian Police Arrest Key Suspect in Alleged $71.2M Crypto Scam

The detention of Rohit Kumar led to new revelations in the investigation of Money Trade Coin (MTC), a project that significantly damaged Indian investors.

Delhi Police have arrested Rohit Kumar, one of the key players in the alleged Money Trade Coin (MTC) Ponzi scheme, Indian Express reported on Monday. MTC is one of the largest crypto projects under investigation in the country as the authorities estimate that the initiative led to $71.2 million in damages to the investors involved.

Kumar is the fourth person arrested in connection with the MTC. Kumar was close to Amit Lakhanpal, the founder and chief executive officer (CEO) of the Flintstone Group real estate development agency. Investigators believed that the firm and Lakhanpal are the main forces behind Money Trade Coin.

The crypto project members offered investments in MTC tokens and pumped the price of the assets with the aim of luring investors. The MTC team promised “10 to 20 times returns in just four to six months” and rewards in the form of real estate, Caribbean citizenships, and Swiss bank accounts for some of the victims.

The coin had never been listed on a cryptocurrency exchange so after taking more than $71.2 million from Indian citizens, the MTC team ceased working, the price sharply fell, and investors were unable to recoup their money.

Lakhanpal’s whereabouts are still unknown to the police, an anonymous source from the police told Indian Express.

“The accused had set up office in Delhi’s Vikram Nagar and used to collect money from investors promising high returns. Lakhanpal was earlier holed up in Dubai and we believe that he may have fled to London,” the source said.

According to a police statement, Lakhanpal used the United Arab Emirates’ open policies to crypto investments and several members of the royal family attended some of its events in Dubai.

In June 2018, Indian authorities described MTC as a fraudulent activity after arresting Taha Kazi, one of the Flintstone Group’s key technical support staff. The crypto project members are under investigation for fraud, criminal activity, and involvement in a banned money activity with Lakhanpal named as the main suspect in the scheme.