Hyderabad: The Hyderabad police have unearthed a Rs 712-crore investment fraud involving Chinese and Dubai operators, and suspected to be linked with Hezbollah terror group. Nine persons have been nabbed for their involvement in the case.
The police arrested a Gujarat-based businessman Prakash Mulchandbhai Prajapathi and his associates Kumar Prajapathi, Naimuddin Wahiduddin Shaik, Gagan Kumar Soni, Parveez alias Guddu, Shameer Khan, Mohammed Munawar, Shah Sumair and Arul Dass.
The arrested were made after an investment fraud complaint was filed at Hyderabad cyber crime station by a city-based businessman, who lost Rs 28 lakh to fraudsters.
According to the police, the complainant was offered a part-time trading job through Telegram messaging app, after which he registered on the website that facilitated the investment fraud.
Initially, the victim was given the job of rating a set of tasks after investing smaller amounts of money, for which he earned a profit. However, after the first few transactions, he could not withdraw the profits.
The fraudsters made the victim deposit more money in the wallet, assuring that he could withdraw profits later. However, they later asked him for a withdrawal fee of Rs 17 lakhs to get back the invested amount, including profits.
The police found that the victim’s money had been transferred to six accounts including an account maintained in the name of M/S Radhika Marketing. From here, the money was transferred to Dubai and used for the purchase of cryptocurrency.
Police teams visited different states across the country and checked several hundred bank transactions to understand the magnitude of the fraud. “Close to 15,000 people were duped by using a sophisticated network in India, Dubai. The plan was hatched by Chinese nationals,” said CV Anand, commissioner of police, Hyderabad.
According to the police, one of the accused, Prakash Prajapathi, is associated with Chinese nationals Lee Lou Guangzhou, Nan Ye, Kevin Jun, and others. “He coordinates with them in supplying Indian bank accounts and shares the OTPs for operating these accounts from Dubai and China through remote access apps.” the police said.
The Chinese masterminds run the task-based investment frauds by luring victims by through Telegram messages, police added.
The police are now taking up the matter with the National Investigation Agency to probe the connection of the fraudsters with international terror groups. “During the probe we found that the money sent from India to Dubai was converted into USDT (a cryptocurrency). Some of the apps used to convert the amount into digital currency were linked to Hezbollah, and that needs to be investigated by the NIA,” the commissioner added.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
