The cryptocurrency market in India has been blooming ever since the nation’s central bank lifted its shadowban on the cryptocurrency industry. However, the growth of the market has also attracted bad actors who try defrauding the not so tech-savvy crypto enthusiasts and those unaware about the cryptocurrencies in general. Just recently, a class-action lawsuit was filed against a cryptocurrency scam that has already defrauded several Indian investors.
According to reports, a representative lawsuit has been filed in an effort to stop a major scam that was being promoted in three major Indian languages, promising investors up to 900% returns on investments.
Last week, the New Delhi court had passed a notice that was published in all major Indian newspapers to invite victims of this scam to come forward and join the legal battle. The suit was filed by Advocate Nipun Saxena on behalf of various Indian citizens who said they had been duped by a company called IQ Option.
The platform has been advertised like a gamified platform to trade stocks, forex, options, and cryptocurrencies. As of now, 26 different cryptocurrencies are listed on its website; including bitcoin (BTC), ether (ETH), stellar (XLM), and bitcoin cash (BCH).
“The financial products offered by the company include contracts for difference (‘CFDs’) and other complex financial products,” the company adds.
As per the platform’s website, it has more than 48 million registered users from over 189 different countries, including India. Cyprus registered IQ Option Europe Ltd. and St. Vincent and the Grenadines-registered IQ Option Ltd. are listed as the registered owners and managers.
Targets non-tech savvy users
“The platform uses three Indian languages, Hindi, English, and Bangla to target Indian customers.”
The scheme attracts investors with its promises of massive returns and the $1 entry scheme. Saxena explained that the platform hides the 2% fee that is charged every time a use withdraws funds. However, even after a customer pays these fees, they still aren’t able to withdraw the funds as the platform then asks for the user’s credential and then display’s a series of errors.
Lawsuit seeks complete ban
Hence, the lawsuit seeks a permanent injunction against the company and urges that the regulators block all websites and mobile applications that are used by this platform. The suit also seeks an injunction that bars the platform from conducting any business in India in the future.
The lawyer believes there are several victims throughout India who have been duped by this scam. The platform has also been reported several users from other countries have also reported this platform.