CoinX Trading MLM Business Worth $1.43 Million Gets Caught for Conducting a Scam

CoinX Caught For Conducting An MLM Scam Valued At $1.43 Million

During a raid at Indian real estate firm, GRM Estates Pvt. Ltd, police accidently came across the CoinX Trading Office located in Hyderabad. Turns out, the creator behind CoinX, Gardas Ramesh, and other involved members have since been caught red handed for conducting a multi-level marketing (MLM) Ponzi scheme.

As per the details reported by BTC Manager, the scammers done in collecting nearly $1.43 million from over 1,200 investors. The latter was supposedly promised high return on investments (ROI). The scam was apparently a long-term effort, as it started as early as 2016. Ramesh hired software firm, C.B Online to create a website that looked legitimate enough.

Interestingly, one would not have been able to trace the originality of CoinX, as the firm was stated as being headquartered in New York, with a falsified start date of 2013. To make the business attractive, Ramesh not only promoted high chances of making a return, but also promised a “60 percent commission to successful referees.”

As for its current stance, it has been approximately two weeks since the CoinX trading website has been ceased.

This is definitely not the first crypto-bust in India, as a recent report by The Next Web stated that a fake Ripple Futures company was established and promised investors tripled ROI in as little as 250 days. Like CoinX, this respective firm advertised that its firm operates in the U.S only to find out that it was based in an Indian city called Ghaziabad.

Such scams and theft are surely to bring fear in countries across the globe and India’s current RBI Ban is a pure reflection of what many trying to bring down. Do you still think cryptocurrencies have a chance, especially considering the fact that crypto scams are continuing to grow in large numbers?