A representative image for fraud.
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Bengaluru: A father-son duo allegedly duped approximately 1,400 people out of Rs 6 crore by luring them to invest in a non-existent cryptocurrency, according to the police.
The two, in partnership with another person, operated GG Online Private Ltd on Sampige Road, Malleswaram. They targeted potential investors, promoting a “new-age” cryptocurrency named GGO, named after their company. They also advertised this “product” on social media.
They assured potential investors that GGO would soon be available on cryptocurrency exchanges and could rival the value of Bitcoin, promising lucrative returns to those who got in early.
Central Crime Branch (CCB) investigations indicate that the firm amassed between Rs 5-6 crore from about 1,200-1,400 individuals. However, the catch was that the cryptocurrency GGO did not exist.
In a bid to gain trust, the trio offered an additional 15% return on the initial investments to early investors, resulting in positive word-of-mouth that attracted even more investors.
The police suspect that after accumulating a significant amount, the suspects ceased payments to investors. Many did not even receive their initial investments back.
It was eventually unveiled that GGO was either non-existent or worthless if it did exist. The CCB asserts it was a scheme that preyed on unsuspecting investors.
Acting on complaints, CCB officials apprehended the suspects identified as Satish, his son Srikanth, and associate Deepak.