Chennai Cryptocurrency Scam: The cyber crime police in Chennai have arrested a 41-year-old man, S Ramakrishna Reddy, for allegedly running a cryptocurrency scam through his company, Bitcoin India Software Services.
How the Cryptocurrency Scam Unfolded
A 35-year-old resident of Jubilee Hills lodged a complaint after losing Rs 8.4 lakh while purchasing 256,416 Siacoin (SC) through the Bitcoin India Wallet & Exchange platform.
After making the purchase, his account was suspended and later showed a zero balance.
The scammers allegedly deducted funds under the pretext of maintenance fees.
Upon investigation, police found that Reddy and his brother created the platform to systematically defraud cryptocurrency traders across India.
The duo operated through a website and a mobile application, luring traders before blocking their accounts and withdrawals.
Chennai Cryptocurrency Scam: Legal Action Against the Accused
Authorities have registered a case against S Ramakrishna Reddy under:
Sections 66(C) & 66(D) of the IT Act-2008 (identity theft and cheating through electronic means).
Sections 419 & 420 of the IPC (cheating and fraud).
Stay Safe from Crypto Scams
Chennai Cryptocurrency Scam: To protect yourself from similar scams, follow these safety measures:
Use reputed cryptocurrency exchanges that are registered and have strong security protocols.
Verify the legitimacy of the platform by checking reviews and regulatory compliance.
Avoid storing funds on exchange wallets for long periods—transfer them to personal hardware wallets.
Be cautious of maintenance fees and hidden charges that seem unusual.
Report suspicious platforms to cyber crime authorities to prevent others from falling victim.
This case highlights the growing risks in the cryptocurrency sector, urging traders to remain vigilant and adopt secure trading practices.
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