Considering the boom in the crypto industry, there have been a lot of many new crypto exchanges which have cropped up online. Every other day, we have one or another new exchange or a new crypto token launched. Taking this exuberance in the market as a motivation, several shady exchanges have also come up. One such instance in the Crypto world trading net!
This exchange cryptoworld trading .net was promoted with much fanfare in India from March to June. But now, we can see that the site is down!
Apparantly, they have collected as much as Rs. 250 Crore from Indians, and the person at the center is one Vikas Kalda from Ambala, in the state of Hariyana.
How was the Fraud committed?
Crypto world trading. net was an exchange that promised exceptional returns on investment. The returns were as high as 1% daily! Which means 30% a month and 365% in a year! Most financial pundits say that an annualized 15% ROI is a decent return.
But 365% sounds like a proposal that is too good to be true! If there is some smoke, there is bound to be a fire. Crypto world trading net was a fraud!
After running for almost four months, the crypto world trading.net login is no more available. The site has vanished from the hosting servers! And along with them, the money that people had invested!
The minimum investment amount in crypto world trading .net was Rs. 8000! Vikas Kalda would approach unsuspecting investors with the scheme to double their investment in 4 months.
He would say that the investors would get money every weekend. So, people invested very liberally. It was a simple money circulation scheme. The company would take money from new investors and give it to the older ones.
However, the scam came to the top in August when the site went down! People like Vikas Kalda said the site was under maintenance due to heavy load. But the site never came back online.
Cases being Filed against Crypto World Trading Net
Many cases are filed in Mabala and nearby areas against the company and Vikas Kalda, allegedly the company's founder.
The CEO is apparently under arrest (1). Many more cases are coming out in the open against Vikas Kalda. The scope of the Fraud is estimated to be around Rs. 250 to Rs. 300 Crores!
Status of Accused in the Crypto World Trading. Net Scam
Around four people have been arrested concerning the crypto world trading net scam (2). They are all from Ambala. The accused names are Kapil Jaiswal, Vikah Kalda, and Ramesh Kumar. The name of the fourth arrested is unknown.
During a news conference, the Superintendent of Police (SP), Jashndeep Singh Randhawa, stated that the accused had exploited Crypto World Trading. Net company to defraud customers and steal thousands of rupees.
After committing the deception, the accused ran off with the money that had been invested. Following the investors' report, the police have opened an investigation into allegations that the accused engaged in fraudulent activity and conspired with others.
DSP Jogindra Sharma was selected to head the investigation committee established after the incident. The authorities have thoroughly investigated the crime, and four suspects have been taken into custody.
All the accused have been remanded in custody.
Why do people Fall for These MLM schemes?
Crypto world trading. net is a classic Multi-level Marketing Scheme (MLM) (3). In such schemes, people are given incentives to motivate more people to invest in the scheme.
As new people invest, their money is circulated to older people. At one point, when there are many new low-level members, the scammers stop the scheme's operations. Typically, the lower-level investors are the ones who suffer the most.
Such MLM schemes have been legally banned in India. But people come up with more cunning and innovative ways to dupe people.
The greed of Investors is the reason for their downfall. MLM schemes are nothing new. They have been in operation for centuries. Still, people fall for them because of greed.
As a thumb rule, “if something sounds too good to be true, it probably is not true”, mostly.
How to Avoid Scams like Crypto World Trading Net?
Awareness of the modus operandi of such MLM schemes can protect investors from getting trapped in MLM schemes. Before investing, people should thoroughly investigate the company offering the scheme.
Generally, a simple google search can reveal the truth about such schemes. Other indicators of an MLM scheme are:
1. Products or services that are of low quality or no quality
The services or products offered in MLM are generally just for the namesake. The real economy of the scheme is to obtain money and give it to others.
2. Unrealistic claims of the product or the offer.
The return on investment offered by the scheme is generally very lucrative. Schemes like 'Money doubles in 25 days or two months or five months' claim that their executives have earned lakhs within a year with an expensive house and vehicles are generally seen in such schemes.
3. Intensive sales pressure tactics.
There is pressure to invest quickly because there is a chance of a fear of missing out (FOMO) on such a lucrative scheme.
4. Little or no reliable information about the company.
Generally, such companies have been put up recently, and you would not find much background information about the company operating the MLM scheme.
5. A strong gut feeling about the thing being a scam!
I have been a victim of such MLM schemes and my other friends. One common thing they all tell me is an uneasy feeling after investing the money. There is no scientific theory behind this, but that is the case.
Crypto World Trading .net was a scam that has run its course. Thousands of investors have already lost their hard-earned money, and the chances of recovering are slim. The Crypto world trading. Net login is not possible since the site itself is down. It reminds people that no scheme can make you rich overnight; hard and smart work is the only way. Unless you plan to operate your own MLM scheme, in which case, law and order are not far behind.