In a major breakthrough, the Economic Offences Wing (EOW) of Nagpur Police has uncovered an alleged multi-state cryptocurrency-linked investment fraud that is believed to have duped thousands of investors by promising extraordinary returns through digital assets marketed as “Free Coin” and “Merchant Coin”.
The investigation has so far led to the arrest of Nagpur-based agent Mihul Shivaji Dixit and Rakesh Kumar Mohanlal Garg alias Rakesh Agrawal, a director of Punjab-based CLBP System Private Limited Collection Company. The duo is accused of promoting and operating the investment scheme.
The case was registered following a complaint filed by Reema Ranjan Ghosh, a resident of Ramnagar, at Pachpaoli Police Station. According to investigators, the accused convinced investors to put money into a scheme called Future Digital Assets (FDA), claiming that investments would generate substantial returns within 100 days.
Investors were allegedly promised huge profits through digital tokens branded as “Free Coin” and “Merchant Coin”, with company representatives projecting the venture as a revolutionary digital asset platform capable of delivering high returns in a short period.
Online Promotions and Referral Network
Investigators said potential investors were attracted through company websites, YouTube presentations, Telegram meetings and online dashboards displaying virtual earnings and investment growth. The scheme reportedly operated on a referral-based model, encouraging participants to recruit new investors in exchange for commissions and promises of earning lakhs of rupees every month.
Believing these claims, the complainant and several others invested money in the platform. However, despite repeated assurances, investors allegedly did not receive any actual returns.
According to the complaint, investors were also told that the value of Merchant Coin would eventually rise to Rs 1 lakh per coin, prompting many to increase their investments. The complainant alone is alleged to have invested Rs 2.25 lakh based on these assurances.
Although investors could see large balances reflected in their online wallets, investigators found that they were unable to withdraw any funds. When refunds were sought, company representatives allegedly cited internal policies and conditions to avoid repayment.
Probe Reveals Massive Scale
During the preliminary investigation, police found that at least 25 investors connected to the complainant had collectively lost around Rs 5.40 lakh.
However, a deeper probe revealed a much larger operation. According to the EOW, more than 31,117 investors from Maharashtra and several other states had reportedly invested money through the platform.
Investigators also discovered that the company’s digital network was linked to over 10.24 lakh registered users, including nearly 30,000 users from Nagpur alone, raising concerns about the scale of the alleged fraud.
Rs 1.72 Crore Frozen, Digital Evidence Seized
As part of the investigation, the EOW seized laptops, mobile phones and other electronic devices believed to contain crucial evidence related to the company’s financial transactions and digital operations.
Authorities have also frozen bank accounts and fixed deposits linked to the accused, securing assets worth approximately Rs 1.72 crore.
Mihul Dixit was arrested from Nagpur, while Rakesh Garg was apprehended from Chandigarh. Both have been booked under relevant provisions related to cheating, criminal breach of trust and financial fraud.
Investigators estimate that more than 31,117 investors may have collectively invested nearly Rs 1,558 crore through the network, making it one of the largest alleged digital investment fraud cases currently under investigation in the region.
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