India is experiencing crypto mania right now, so much so that many people have found themselves being duped by scam artists recently.

The Indian police have arrested Kamal Vishnoi this week for allegedly setting up a fake Bitcoin trading platform and tricking many investors into using it.

A lack of government regulations within the crypto market, along with the Bitcoin craze throughout the country, has led to the creation of several fake crypto companies that hope to trick amateur investors who are blinded by the offer of quickly becoming wealthy.

The police say the scam Vishnoi was operating was similar to a different multi-level crypto marketing scam ran by two individuals who were also arrested several weeks ago by the Cyber Cell unit. That criminal operation stole millions of dollars from a lot of people.

The police have shared that Nitin Gupta, one of the victims of Vishnoi’s alleged criminal operation, issued a complaint, and the case was then registered under IPC sections 420,406, and 20-(B) by the Economic Offences Wing. Vishnoi has been charged under IT Act, 2000, the primary law in India that handles cybercrime and electronic commerce.

Gupta explains that Vishnoi established what appeared to be a legal Bitcoin trading platform, but the entire thing was fake. He also offered investors an opportunity to invest in Bitcoin and earn 5 percent interest.

He goes on to share, “I met Vishnoi last year. He was offering several plans at 4-5 percent interest rate on a daily basis. He also offered me a referral plan, wherein I would get a commission rate for the number of people referred. I asked my close friends to invest.”

Apparently Vishnoi created a false website for people to register themselves and move their digital assets to personal e-wallets. Gupta was promised that his digital coin investment would double and he would be given his initial investment along with his earned coins within 30 days. However, that did not happen. After a bunch of excuses, asking investors to invest in yet another fake coin through another fake website, Vishnoi eventually ceased all communication with the people he had swindled.

On many occasions, the Indian government has warned crypto investors to protect themselves from schemes within the crypto realm. In the past, the Reserve Bank of India and the Securities and Exchange Board of India has voiced concern that a complete lack of regulatory framework could lead to schemes. The present unregulated state of the crypto realm is a problem for both investors and the government.