Rs 200 cr crypto fraud expands as Mumbai cops join probe

Hyderabad: The cryptocurrency fraud involving CoinZx, a company allegedly linked to Dubai, has expanded as Mumbai police have joined the investigation, following a case registered earlier by the Hyderabad central crime station. The total estimated scam amount could reach Rs 200 crore, say investigators.
Ravi Mahaseth, managing director of CoinZx, was arrested by Hyderabad police and later granted bail by a sessions court. His associate, Ramesh Puri, remains in custody in Hyderabad.
A week ago, the Kasturba Marg police in Mumbai filed a case against Mahaseth and five others for allegedly deceiving investors into investing in a cryptocurrency that was marketed as "India's bitcoin." Investors were promised high returns and were told that CoinZx had the backing of Mahaseth's extensive forex trading business.
The first complaint against CoinZx was filed in Hyderabad on Feb 11 by Jitender Puri, a resident of Goshamahal, who alleged a loss of Rs 5 lakh. Several other investors in Hyderabad collectively invested around Rs 2 crore.
Police allege that Mahaseth and his associates convinced depositors to invest in CoinZx, but the company later ceased operations, leaving investors in the lurch. The case was filed under various sections of the IPC and the Telangana State Depositors Act.
Mahaseth, a 40-year-old from Malad East, Mumbai, claimed his arrest was illegal, citing a lack of prior information regarding the arrest and his family not being notified. He also mentioned his health concerns, including undergoing open-heart surgery. Despite these claims, the sessions court granted bail on the condition that Mahaseth cooperate with the investigation, not tamper with witnesses, and report to the CCS twice a month until the chargesheet is filed.
The court also stipulated that once his health improved, Mahaseth must surrender for five days of police custody to assist in the probe.
The investigation into CoinZx has expanded, with Mahaseth being linked to other fraudulent investment schemes, such as FX & Smart Bull, Smart X, and Samruddhi Multi Trade Private Ltd.
The first known case against CoinZx was in Jan 2023, when a victim allegedly invested $500 after attending a multi-level marketing seminar. As law enforcement agencies in Hyderabad and Mumbai continue their probe, the total number of affected investors continues to rise.
With cases now booked in both Hyderabad and Mumbai, law enforcement agencies are expanding their probe. Hyderabad police informed Mumbai cops regarding the arrest of the accused.