Crypto currency Scam: Cyberabad police nab 3 for duping people of Rs 10 crore
The police cautioned people not to invest in such fake schemes
HYDERABAD: The Cyberabad Economic Offence Wing (EOW) nabbed three offenders affiliated with XITO Consultancy Services Pvt. Ltd. (XCSPL) in a financial fraud case on Saturday.
According to Cyberabad police, the offenders used the website “xcspl” to attract investors in Telangana and Andhra Pradesh with promises of large profits utilising 'X coins' or XITO currency.
The offenders defrauded over 500 victims/public in Telangana and Andhra Pradesh to the tune of Rs. 10 crores by luring them with big returns on investments using GoFlyx in the name of 'X coins of Digital currency'.
According to the police, the accused B N Sathish and Avalakondappa Venkata Chalapathi established XITO Consultancy Services Pvt. Ltd in 2015 with its registered office in Banglore. Later, in collaboration with other accused Gadiraju Rajendra Prasad Raju, Guru Prasad, Pasham Venkat Prasad, Jyothi, they established a branch office at KPHB and began luring naive depositors by promising enormous profits on investments.
The accused also started a website, XCSPL to lure in innocent depositors by claiming a 1:1 return for three months and a 1:4 return for a year, with a three-month lock in period.
The company proposed to give depositors/investors X- Coins in exchange for their money and told the customers that X- Coin's value varies from day to day basis. The accused lured many victims, approximately 150 to 500 members from Telangana and Andhra Pradesh, and collected a total of Rs. 10 crores (approximately) in deposits/investments. When depositors sought their money back, the accused did not respond and failed to repay their investment as promised.
T. Rajendra Prasad, a victim, had paid Rs. 6,50,000 in multiple installments in the accused company using the UPI ID of XITO Consultancy Services. The accused closed their office on the 11th floor of the Manjeera Trinity Building in Kukatpally since the depositors demanded their money back.
The Cyberabad police are attempting to apprehend the other accused who are currently on the run.
Cyberabad Police in coordination with the ROC, Bankers and other concerned agencies is trying to elicit more information about the accused and payment and also involvement of other companies and their directors in the fraud. The police cautioned people not to invest in such fake schemes.