Binance and the Delhi Police have successfully dismantled a $100,000 scam that misled investors with false claims tied to India’s renewable energy initiatives.

Collaboration Between Binance and Delhi Police

The cryptocurrency exchange Binance partnered with Indian law enforcement to bust a sophisticated scam orchestrated by a fraudulent entity known as “M/s Goldcoat Solar.” The scam falsely claimed ties to India’s renewable energy projects, leading to multiple arrests and the seizure of over $100,000 in Tether’s stablecoin (USDT).

Details of the Scam

The fraudulent operation revolved around deceptive assertions that the entity had secured rights from the Ministry of Power to aid in expanding India’s solar power capacity to 450 gigawatts by 2030. By promising high returns, the scheme attracted numerous investors, falsely aligning itself with the nation’s renewable energy goals. The fraud gained significant traction on social media, where scammers impersonated high-ranking officials and used the names of prominent dignitaries to enhance their credibility.

“Victims were deceived by fake earnings reports, allegedly from previous investors, which the syndicate used to build trust in the scheme.”

Investigation Insights

Investigators found that multiple SIM cards were activated using the identities of unsuspecting individuals to conceal the true identities of the perpetrators. Some of these SIM cards were even sent overseas, adding another layer of complexity to the investigation. Funds from victims were funneled through various bank accounts, with some converted into cryptocurrency, further complicating tracing efforts.

Role of Binance

Binance played a crucial role by providing analytical support to the Delhi Police, helping investigators track the financial transactions involved in the scam. This collaboration was instrumental in identifying the flow of funds and the individuals behind the fraudulent activities.

Binance’s Re-entry into India

This development follows Binance’s recent re-entry into India. The exchange has registered as a reporting entity with the Financial Intelligence Unit, as part of its ongoing efforts to comply with local regulations amid a broader crackdown on unregistered crypto platforms.

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