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Kerala Police Make Arrests, Scrutinize Bengaluru Companies Over Morris Coin Scam

Kerala’s Malappuram police have arrested 36 year old Nishad, and intend to charge him under the Prize Chits and Money Circulation Schemes (Banning) Act, according to Indian Express. Nishad is the founder of Morris Coin, widely believed to be a scam, and accused of defrauding his investors to the tune of multiple crores.

The Kerala police launched an investigation into three related Bengaluru-based enterprises – Long Reach Global, Long Reach Technologies (of which Nishad is the managing director) and Morris Trading Solutions – unearthing what seems to be a multi-crore scam. According to the police, these enterprises got over 11 lakh people to give them Rs 15,000 or more in lieu of a new cryptocurrency called Morris coin.

The police have also seized evidence from Nishad’s home, including documents relating to his fraud involving thousands of investors across India.

“We have taken a suo motu case against Nishad under the Prize Chits and Money Circulation Schemes (Banning) Act 1978. We launched an investigation into the case based on a tip off received by District Police Chief Abdul Karim. We recently raided Nishad’s house and have seized documents related to his financial dealings. We are looking into the documents and we have taken statements from some of his ‘clients’ in the area. Nishad will soon be quizzed in the case,”

Vishnu P, Circle Inspector, Pookkottumpadam.

The police say the investors were promised a daily return of INR 270 rupees for 300 days, subject to a minimum deposit of INR 15,000, which would be invested into Morris Coin. After the 300-day period, the investors had the option to exchange their investment for Morris Coin holdings, or so they were told.

If this sounds like a scam from the description alone, that’s because it was. As with most ponzi schemes, investors were also promised rewards for inviting more investors into the scheme. This episode is another lesson for new investors entering the cryptosphere and vulnerable to fraud – if it sounds too good to be true, keep your distance.

Surprisingly, no investor made any complaints in this case. Kerala Police say they will be contacting defrauded investors themselves to collect more evidence, and receive written statements of all involved.

Meanwhile, Nishad continues to maintain that Morris Coin has operated legally and has met all its requirements from a compliance perspective, reports say.

Disclaimer: CoinCrunch.in content is informational in nature and is not meant to be investment advice. Buying, trading or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their due diligence before making any decisions. © 2020 CoinCrunch
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