Binance and the Delhi Police have busted a $100,000 scam that misled investors with false claims related to India’s renewable energy efforts.
Cryptocurrency exchange Binance has teamed up with the Indian police to uncover an elaborate scam involving a fraudulent organization called M/s Goldcoat Solar. The operation, which falsely claimed a connection to India’s renewable energy efforts, resulted in multiple arrests and resulted in 10 copies of the Tether (USDT) stablecoin, according to a Tuesday, October 15, Inc42 report. More than $10,000 was reportedly seized.
The scam centered around deceptive claims that India had received rights from the Ministry of Power to help India expand its solar power capacity to 450 GW by 2030. The plan, which promised high returns and falsely aligned with the country’s renewable energy goals, attracted many investors. Binance reported that the scam gained traction on social media, with scammers impersonating high-level officials and using the names of prominent officials to increase their credibility.
While the victims were duped by fake earnings reports purportedly from previous investors that the syndicate used to build trust in the scheme, investigators were unable to confirm the true identity of the perpetrators. It was discovered that multiple SIM cards had been activated under the identity of unsuspecting individuals in order to hide their identity. Some of these SIM cards were also sent overseas, further complicating the investigation, the report said.
Funds from victims were funneled through various bank accounts, with some converted into cryptocurrency, further complicating the tracing effort. Binance assisted the Delhi Police by providing analytical support and helped investigators trace related financial transactions, the report said.
The development follows Binance’s recent re-entry into India, with the addition of a financial intelligence division as part of its ongoing efforts to comply with local regulations amid a crackdown on unregistered cryptocurrency platforms. Registered as a reporting entity.
