Last Updated : May 08, 2018 01:39 PM IST | Source:

Delhi police raid cryptocurrency mining unit in Dehradun, seize equipment

The 4,000 sq ft complex in Dehradun employed about 100 mining rigs minting Ethereum

Moneycontrol News @moneycontrolcom

Delhi Police Cyber Cell raided a cryptocurrency mining unit in Dehradun and seized hundreds of high-powered computer processors, graphics cards and servers. The police led the raid after the unit came under the radar for an alleged cheating and fraud case.

The 4,000 sq ft complex in Dehradun employed about 100 mining rigs minting Ethereum, Times of India reported. The police said that the owners of the rig were also involved in a Ponzi scheme involving Bitcoins through their website and cheated people of over Rs 100 crore.

Owners of the complex Kamal Singh, a DU graduate, and Vijay Kumar, an engineer, were arrested on April 25 for duping. They along with another person, SS Alagh who is absconding ran the mining operations. They told their neighbours that it was a computer processor unit with servers of a big company.

While questioning the apprehended accused, the police discovered that they had invested the cheated amount in the mining equipment. The accused not just ran the but also came up with their own currency— HBX and Mcap. They also ran another website,

Both websites are now inaccessible as their domain names have expired.

As per the police, in last three months, the accused made about Rs 70 lakh from the unit selling cryptocurrencies in the international market.

Lately, a number cryptocurrency scams have surfaced which have kept the authorities busy. In early April, the Enforcement Directorate registered an enforcement case investigation report (ECIR) against Amit Bharadwaj, a bitcoin entrepreneur who duped thousands of Indians worth over Rs 2,000 crore.

In March, a Delhi woman lost Rs 41 lakh after her bitcoin wallet was hacked.
First Published on May 8, 2018 01:39 pm
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