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Binance, the world's largest crypto exchange, played a pivotal role in helping Delhi Police dismantle a sophisticated scam run by a fraudulent entity, "M/s Goldcoat Solar." The crackdown led to multiple arrests and the seizure of over 100,000 USDT (Tether) in cryptocurrency assets.
The scammers deceived individuals by falsely claiming to be aligned with India's national solar energy initiatives, specifically the government’s target of expanding solar power capacity to 450 gigawatts (GW) by 2030.
The scam involved duping victims into believing they could invest in the government's solar energy plans and earn substantial returns. Fraudsters behind "M/s Goldcoat Solar" falsely claimed to have secured approval from the Ministry of Power, presenting themselves as legitimate participants in India’s renewable energy efforts.
Binance, in a statement, revealed that many victims were drawn into the trap, believing they were contributing to the country's clean energy expansion, while being misled by the scammers into investing in a non-existent scheme.
The scam gained momentum through social media, where it was widely promoted as a legitimate investment opportunity. Scammers impersonated high-ranking government officials and used the names of dignitaries to falsely endorse their scheme.
To build trust among potential investors, they displayed fabricated proof of earnings from earlier supposed investors, creating an illusion of credibility. This led many to believe that the investment scheme was both profitable and secure.
Further investigation by Delhi Police revealed that the fraudsters were using a network of SIM cards obtained under false identities. These SIM cards, activated using fake documentation, were essential for maintaining anonymity and concealing their operations.
Some of the SIM cards were even sent abroad, allowing the scammers to conduct their fraudulent activities through secure communication channels without revealing their true identities.
Victims were lured into depositing their money into multiple bank accounts controlled by the scammers. In an effort to evade detection, a portion of the stolen funds was converted into cryptocurrency, making the trail harder to follow and adding complexity to the investigation.
During the investigation, Delhi Police sought assistance from Binance, particularly for tracing the funds that had been converted into cryptocurrency. Binance provided critical analytical support and helped investigators follow the money trail, which eventually led to the arrests.
The company emphasized its ongoing efforts to collaborate with law enforcement agencies to combat financial crimes.
Jarek Jakubcek, Binance's Head of Law Enforcement Training, stated, “Binance has been conducting sharing sessions with global law enforcement agencies, and this case highlights the positive outcomes of these collaborations.
By connecting with law enforcement agencies, we can provide timely and crucial support in financial investigations and will continue to do so to help combat financial crimes.”
Jakubcek added that Binance remains committed to assisting global authorities in identifying and stopping illicit activities in the cryptocurrency space.
This case serves as a reminder of the importance of due diligence and caution in investment opportunities, especially those involving emerging technologies like cryptocurrency. Binance’s support to the Delhi Police exemplifies the potential of public-private partnerships in the fight against financial crime and fraud.
