Delhi Police and cryptocurrency exchange Binance have collaborated to dismantle a sophisticated scam linked to a fake renewable energy investment scheme, resulting in multiple arrests and the seizure of over 100,000 USDT in cryptocurrency.
What Went Down
The fraudulent operation revolved around a company called “M/s Goldcoat Solar,” which falsely claimed ties to India’s renewable energy goals, particularly the government’s plan to boost solar power capacity to 450 GW by 2030. The perpetrators used this false narrative to lure unsuspecting investors with promises of high returns, falsely aligning the scheme with the country’s renewable energy initiatives.
The scam gained traction via social media, where it was presented as a legitimate investment opportunity. Fraudsters went as far as impersonating government officials and using the names of well-known figures to lend credibility to their claims. They also circulated falsified reports showing inflated earnings from previous investors to gain trust and further their deception.
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How Did The Investigation Take Place?
Investigations revealed that the criminals used a network of fake SIM cards, registered under the identities of innocent individuals, to carry out the scam. Some of these SIM cards were even sent abroad to help the perpetrators avoid detection. The money trail was complicated by the use of multiple bank accounts, with some of the funds converted into cryptocurrency.
Binance, known for its wide array of cryptocurrency services, played a key role by assisting the Delhi Police in tracing the flow of funds. During virtual meetings, Binance provided crucial analytical support, enabling investigators to follow the complex money trail.
Jarek Jakubcek, Binance’s Head of Law Enforcement Training, emphasised the importance of collaboration in tackling such financial crimes. He highlighted Binance’s ongoing efforts to assist law enforcement agencies worldwide by sharing resources and expertise.
This bust follows Binance’s recent re-entry into India after registering as a reporting entity with the Financial Intelligence Unit (FIU) in August, ensuring compliance with the country’s anti-money laundering and tax regulations for virtual digital assets.
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