UBIT Coin Crypto Fraud Exposed: How Investors Lost ₹50 Crore & How To Trade Safely
UBIT Coin crypto fraud scam exposed! Investors lose ₹50 crore. Learn how the scam worked and get expert tips on how to trade crypto safely in India.
Nirmal, Telangana – In a major crackdown on cryptocurrency fraud, Telangana Police have arrested three more accused—Dasari Ramesh, Bommidi Dhanunjay, and Kiram Venkatesh—in the ₹50 crore UBIT Coin scam, bringing the total arrests to eight. The accused allegedly duped 5,000+ investors through a fake crypto MLM scheme, with prominent figures including an ex-Army officer, police personnel, and govt teachers already in custody.
The Modus Operandi: A Classic Ponzi Scheme
The fraudsters promoted UBIT Coin as a revolutionary cryptocurrency offering:
✔ 300% returns on investments
✔ Passive income through multi-level referrals
✔ Fake legitimacy using doctored whitepapers
In reality, it operated as a textbook Ponzi scheme:
Early investors were paid with money from new recruits
No actual crypto trading occurred
The mastermind, Brij Mohan Singh (a serial fraudster), fled with funds when recruitment slowed
"They used psychological tactics—fake testimonials, staged webinars, and even got govt employees to build trust," revealed Nirmal SP Dr. G. Janaki Sharmila.
Police Crackdown: Recovery Underway
🔹 11 bank accounts frozen (₹8.3 crore recovered so far)
🔹 Digital trail being mapped to Singapore & Dubai shell companies
🔹 Victims urged to submit proof at cybercrime.gov.in
5 Red Flags Every Crypto Investor Must Know
1. The 'Guaranteed Returns' Trap
➤ Legit crypto never promises fixed returns – market volatility makes this impossible
2. Anonymous Teams = Scam
➤ Always verify founders on LinkedIn & check GitHub for real project activity
3. MLM/Pyramid Structures
➤ SEBI bans schemes where earnings depend more on recruitment than product sales
4. Pressure Tactics
➤ "Limited-time offer!" or "VIP access" are psychological tricks
5. Unregistered Platforms
➤ Cross-check exchange licenses on SEBI/FIU-IND websites before investing
Expert Safety Tips
✅ Use only SEBI-notified exchanges like CoinDCX or WazirX
✅ Enable 2FA and cold wallets for storage
✅ Follow RBI's investor alerts (@rbi_alert)
The Big Picture
This case exposes how fraudsters exploit India's crypto knowledge gap. With ₹1,200+ crore lost to crypto scams in 2023 alone (Chainalysis data), due diligence is non-negotiable.