The person responsible for the fraudulent Pluto exchange is arrested in India
- One of the oldest crypto scams in India ended with the arrest of Umesh Verma.
- Verma was allegedly the head of the Pluto Exchange scam.
- The case dates back to the bull run crypto of 2017.
Umesh Verma, 60, was wanted by the authorities to be the head of the fraudulent Pluto Exchange.
The Indian authorities arrested Umesh Verma, 60, who was responsible for the Pluto exchange, on his arrival in India. This action settles Bitcoin Pro one of the oldest cases of cryptomoney fraud in India, following the 2017 bull-run and technological innovation in the country.
Arrested as soon as he arrived
Umesh Verma was arrested at Delhi’s Indira Ghandi International Airport after taking a flight from Dubai. India requested Verma’s extradition in October 2020 on charges of fraudulent cryptography. Umesh’s son, Bharat, was also involved, but there are no reports that he has been charged in the Pluto exchange scam.
When they launched the Pluto Exchange platform at the end of 2017, the Verma’s offered advanced services to crypto-hungry people in India. The Bitcoin bubble attracted attention and hope, with huge gains apparently made overnight, while Pluto Exchange offered monthly returns of 20-30%. The local media insisted on the alleged basis of the exchange in Dubai.
Pluto Exchange offered its own room, called Zarus Corner. In addition, the Verma offered India its first mobile crypto application. The application was also very easy to use: users could buy Bitcoins with a simple phone number.
For some, the returns and the technology were too good to resist. In the end, at least 43 businessmen invested a total of more than $270,000 in the project. Yet, coincidence or not, Bitcoin then collapsed, as did Pluto Exchange. With investors having been encouraged by incentives to bring new people into the organisation, the Indian government is going to view the deal as a Ponzi scheme.
The scams of 2020
While in 2017 the Verma’s relied on the hype around the crypto bubble, in 2020 the crooks are using fear, not just the fear of missing an opportunity (FOMO). The development of vaccines against COVID-19 is already leading to phishing attacks. The security companies CheckPoint and KnowBe4 advise consumers to beware of suspicious e-mails concerning vaccines.
As in 2017, however, a crypto bull run will reveal all sorts of inventions. Bitcoin hit a record high on 2 January, reaching more than $32,000. However, on the Livecoin exchange platform in Russia, it has already exceeded 200,000 dollars.