What Is UBIT Coin Cryptocurrency Fraud Case? Tips To Follow While Trading In Crypto
 

The Nirmal police in Telangana have arrested three more individuals—Dasari Ramesh (40), Bommidi Dhanunjay (34), and Kiram Venkatesh (31)—for their involvement in the UBIT cryptocurrency fraud case, which duped thousands of investors under the guise of a multi-level marketing (MLM) scheme. This latest development comes just weeks after the arrest of five other accused, including a former Indian Army official, an excise sub-inspector, a police constable, and two government teachers, exposing a well-organized scam that allegedly cheated around 5,000 victims out of an estimated ₹50 crore.

How Did the UBIT Cryptocurrency Fraud Work?

The scam revolved around UBIT Coin, a fake cryptocurrency promoted as a high-return investment opportunity. The accused lured investors with promises of exponential profits through trading and MLM recruitment. Victims were told that investing in UBIT Coin would generate passive income, but in reality, the scheme operated like a Ponzi scheme, where early investors were paid with funds collected from new entrants. Once the flow of new investments slowed down, the operators vanished with the remaining money.

According to Nirmal SP Dr. G. Janaki Sharmila, the mastermind behind the scam was Brij Mohan Singh, a repeat offender with a history of financial frauds across India. The arrested individuals played key roles in recruiting investors, collecting funds, and promoting the scheme through false claims.

Police Action and Recovery Efforts

As part of the ongoing investigation, the Nirmal police have:
✔ Frozen 11 bank accounts linked to the scam.
✔ Tracked financial transactions to trace the flow of illicit funds.
✔ Initiated the process of seizing assets acquired through fraudulent means.

Authorities have urged victims to come forward and file complaints to assist in the recovery process.

5 Essential Tips to Avoid Crypto Scams
With rising cryptocurrency fraud cases, investors must stay cautious. Here are key precautions to follow while trading in crypto:

1. Verify the Project’s Legitimacy
Check if the cryptocurrency is listed on reputable exchanges (e.g., Coinbase, Binance).

Research the development team and whitepaper—avoid projects with anonymous founders.

2. Beware of Unrealistic Returns
If an investment promises "guaranteed high returns" or "risk-free profits," it’s likely a scam.

Legitimate crypto investments carry market risks and do not offer fixed returns.

3. Avoid MLM-Based Crypto Schemes
Many scams operate as pyramid schemes, where earnings depend on recruiting new members rather than actual trading profits.

Regulatory bodies like SEBI and RBI have warned against such models.

4. Use Regulated Platforms
Trade only on SEBI-registered or globally recognized exchanges.

Avoid transferring money to private wallets or unknown accounts.

5. Stay Updated on Scam Alerts
Follow advisories from RBI, SEBI, and Cyber Crime Police.

Report suspicious schemes to authorities before investing.

Conclusion
The UBIT Coin scam highlights the dangers of unverified cryptocurrency investments. As digital assets gain popularity, fraudsters are exploiting investor enthusiasm with fake schemes. By following due diligence and sticking to regulated platforms, traders can minimize risks and avoid falling victim to such scams.