A class action lawsuit has reportedly been filed against a cryptocurrency scam that has defrauded many Indian investors. The scam, promoted in three Indian languages, lures investors by promising up to 900% return on investment. T.The Delhi court has ordered a report to be posted in the major newspapers to bring victims of this scam to the fore.
Class-action lawsuit to stop a crypto scam in India
A representative lawsuit has reportedly been filed to prevent a cryptocurrency scam from continuing to mislead Indian investors. The Delhi court last week sent a message to leading Indian newspapers inviting victims of the scam to come forward.
Lawyer Nipun Saxena has filed the lawsuit on behalf of several Indian citizens who said they had been defrauded by a company called IQ Option, local media reported. This platform claims to enable users to trade stocks, forex, options and cryptocurrencies. Its website lists 26 cryptos, including bitcoin (BTC), ether (ETH), stellar (XLM), and bitcoin cash (BCH). “The financial products the company offers include contracts for difference (‘CFDs’) and other complex financial products,” the company explained.
According to its website, IQ Option has more than 48 million registered users from 189 different countries, including India. The site is owned and operated by Cyprus-registered IQ Option Europe Ltd. and IQ Option Ltd., registered in St. Vincent and the Grenadines. Saxena’s lawyer was quoted by the publication of The Leaflet:
The platform uses three Indian languages, Hindi, English and Bangla to reach Indian customers.
The scheme lures investors with delectable promises, such as returns of up to 900%. Only a small initial investment of $ 1 is required to enter the scheme.
The attorney explained that the platform has hidden costs, including a 2% fee for each withdrawal. However, after paying the fee, customers said they still couldn’t withdraw money as the website would ask them for their credentials and then display a series of error messages.
The lawsuit aims for a permanent ban against the scammers and to block all websites and mobile apps used for this scam in India. The lawsuit also envisages a court order to prevent the suspects from running a future business in India.
Lawyer Saxena believes there are thousands of other victims scattered across India who have been duped by this scam. Many people outside of India have also reported IQ Option as a scam.
What do you think of this crypto scam? Let us know in the comments below.
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