"Crypto Scam Unveiled: Indian MD Arrested for $23M Fraud"
1min read Mumbai police have arrested the managing director of Coin ZX, an Indian cryptocurrency trading platform, along with five associates, for allegedly defrauding investors of $23 million (Rs 200 crore). The case was filed last week by the Kasturba Marg police force against Ravi Mahaseth, who is now based in Dubai, and other individuals involved in the fraud.
Investors first raised complaints about Coin ZX in January 2023. Mohammad Arif, a 25-year-old man, invested over $5,000 in the platform after attending a multi-level marketing seminar. He was told that his money would be invested in Bitcoin and he could withdraw his investment and profits after six months. However, the platform allegedly defrauded people across India, with authorities in Hyderabad lodging a case against Mahaseth and Coin ZX just two weeks ago.
In Hyderabad, one complainant invested around $1,300 in Coin ZX through an associate of Mahaseth, Ramesh Puri. The victim received returns for four months before payments ceased, with Coin ZX citing a technical issue. The firm promised to resume returns and deliver all outstanding payments within 20 months, but authorities later found both claims to be false. Coin ZX shuttered operations before many investors realized the company was fraudulent.
Mahaseth and his associates were booked under Sections 406, 420, and 120-B of the Indian Penal Code, which relate to criminal breaches of trust and misappropriation of funds. However, Mahaseth relocated to Dubai after the initial complaints against Coin ZX. The UAE and India have an extradition treaty, but Mahaseth's precise whereabouts are currently unknown. His LinkedIn profile still lists him as residing in Mumbai, while his social media accounts do not list any locations. His Instagram features a post from Dubai, where he attended a convention for VitnixX Ai, his latest venture.
Cryptocurrency fraud has been a significant issue in India in recent years. In 2023, India ranked fifth in terms of the number of complaints related to crypto fraud (840) and sixth in terms of the total volume lost ($44 million). Just today, India's Enforcement Directorate raided premises linked with Indian national Chirag Tomar, who was 
