Bhubaneswar: The Economic Offences Wing (EOW) of Odisha Crime Branch has busted an APP-based online Ponzi scam with the arrest of a person from Balasore.
EOW sources here on Friday said accused Nilesh Kumar Kar of Angaragadia, Balasore, was arrested on Thursday U/s 420/467/468/471/120-B IPC, r/w Sec.66 (D) of IT Act/Section 6 of OPID Act for running a Ponzi scheme fraudulently claiming to be a crypto mining company.
The accused was produced before the Designated Court under OPID Act at Balasore and is being brought to Bhubaneswar on four days of police remand.
The arrest was made on the basis of an allegation made by one Mahamanya Jena of Sahadebkhunta in Balasore. Jena in his complaint alleged that Nilesh induced him to invest in an App/website namely ‘Cloud-Fut’ for earning extra money. He invested Rs.2,13,038 but when he was to receive money on his invested amount, suddenly the website stopped functioning.
Nilesh claimed that Cloud Fut to be a USA-based company and produced fake RBI certificates and also fake appointment letters of ‘Cloud-Fut’ as Dist. Leader to gain the trust of investors.
He claimed that the Government of India has made a 10 years agreement with “Cloud Fut”.
EOW sources said that the Ponzi farm lured more than 80,000 investors across the country including around 200 investors from Balasore with a promise of multiplying their money in a very short period.
One Mobile phone containing many incriminating materials, fake authorization/certificate purportedly issued by Governor, RBI and the appointment letter issued to the accused by the Cloud-Fut have also been seized from the possession of the accused.
