The Bureau of Immigration (BOI) has issued a look out circular (LoC) against a Hungarian national and head of a crypto-ponzi firm who is allegedly involved in deceiving investors of their money, the Economic Offenses Wing (EOW) said on Saturday. The firm, STA Token, is accused of operating a ponzi business and collecting around Rs 1,000 crore deposits from two lakh people across the country without any authorization from the Reserve Bank of India (RBI). The BOI has taken this step to prevent the accused from leaving the country.
According to the EOW, STA Token has been running a fraudulent investment scheme where it promises high returns to investors who deposit their money into the firm. The scheme, however, operates like a pyramid or ponzi scheme, with new funds being used to pay returns to existing investors. This type of scheme is illegal and unsustainable in the long run.
The EOW has alleged that STA Token has collected deposits worth Rs 1,000 crore from around two lakh people across India. The firm has been able to deceive investors by promoting its investment scheme through aggressive marketing tactics and promises of high returns in a short period of time.
The look out circular issued by the BOI will make it difficult for the accused Hungarian national to leave the country and evade arrest. It is an important tool used by law enforcement agencies to prevent individuals involved in criminal activities from fleeing the country. The BOI will share the details of the LoC with airports and other immigration authorities to ensure that the accused is apprehended if he tries to leave the country.
The Reserve Bank of India has also taken note of the fraudulent activities of STA Token and has clarified that the firm does not have any authorization to collect deposits from the public. The RBI has warned the public against investing in such schemes and has advised individuals to exercise caution while investing their money.
In recent years, there has been a rise in the number of ponzi schemes and other fraudulent investment schemes targeting unsuspecting investors. These schemes often promise high returns and use aggressive marketing tactics to lure individuals into investing their money. However, they are usually unsustainable and collapse, leaving investors with significant financial losses.
The case of STA Token and its involvement in a ponzi scheme highlights the need for increased vigilance and regulation in the financial sector. Authorities need to crack down on such fraudulent activities and ensure that individuals involved in deceiving investors are held accountable for their actions. The issuance of the look out circular by the BOI is a step in the right direction towards preventing the accused from escaping justice and protecting the interests of the investors who have been deceived by the firm.
