Mumbai: Ponzi crypto app collects crores and vanishes overnight

Reena Tiwari, outside MIDC police station on Thursday. Pic/Anurag Ahire

A crypto trading app, Ece Limited, where thousands of people invested crores of rupees, has not only disappeared from app stores but also stopped functioning since September 26. This came to light after some of the victims approached MIDC police station on Wednesday seeking help after losing their investments. Reena Tiwari, one of the victims, said she and her family members had invested more than Rs 16 lakh since July. But now, when they log in on the app, it shows their account balance as zero.

Account details of an investor on Ece Limited before the app stopped service (left) The account now shows all amounts as zero

ECE Limited, which claimed to be an USA-based firm, had opened two Telegram groups - ECE Indian Community which had more than 19,000 members and Ece Official - where they spread their investor base, said victims. As per estimates, the company has decamped with hundreds of crores of rupees. Many of the victims said they had used their life's savings, some even took loans, as the app promised high returns.

As the app stopped functioning on September 26, a number of victims, including Tiwari and her five-six family members, approached the MIDC police station on Wednesday. Tiwari added that investors from different states such as Gujarat, Madhya Pradesh, Uttar Pradesh, Odisha, etc have also approached their local police stations regarding the matter. MIDC cops recorded the statements of the victims on Thursday.

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Pyramid scheme

Tiwari's sister Ruchi Pandey, who had also invested money, said, "Thousands of people have been duped by this company. The company, apart from the Telegram groups, has also shared WhatsApp numbers of their customer care staff. Earlier, we could withdraw the profits on our investments. But later, they started deducting 5 per cent of the withdrawal amount. They also said that if we manage to get five people to invest in the app, they will not deduct the money."

Reena Tiwari with a family member at the MIDC police station on Thursday. Pic/Anurag Ahire

Cops said that the firm offered high returns and benefits to lure investors. Earlier they also let them withdraw profits. But as it had high returns, more and more people started investing the profit too. The firm also gave a 200-US dollar bonus to those who got more people to invest in the app.

"When we tried to withdraw some of the money in September, we saw that the withdrawal option was not there. When we checked with customer care staff, they said there was some problem from the RBI side and assured us that it would be solved in a week. But later they said, if we wanted to withdraw money, 5 per cent of the principal amount would be reduced. We felt something was fishy so did not withdraw money. Later we learnt that even those who agreed to the deduction could not withdraw money," said Tiwari.

A Telegram group created by Ece Limited officials with more than 19,000 members (right) account details of a victim

High profit

Another victim, Harilal Patel, an Andheri resident, said, "In July this year, I got a message on WhatsApp from one woman who introduced herself as Diana. She told me about Ece Limited. After she convinced me with the promise of high returns, I initially invested Rs 4,000. Once I started getting profits, I started increasing investment. I have invested more than Rs 6 lakh since then and even withdrew Rs 40,000 of the profit. Before the app stopped functioning, my account balance was Rs 8 lakh, including the principal amount and profit."

Certificates that Ece Limited shared with the investors

Patel added Diana had allegedly told him that the USA-based company was planning to start offices in India too. A 42-year-old engineer from Sakinaka told mid-day he and his family members invested around Rs 28 lakh. "I was told that the firm was a US-based trading platform dealing with UPI and crypto trading. I had invested in both."

Expert warns

Pinakin Dave, country manager (India and SAARC region) at OneSpan - a cyber security company, told mid-day, "If anyone wants to invest through an app, they should first check who owns the app. These details can be found on Play Store or App Store as they require details about the company and owner before making the app available on their platform. One can also find developer information from the app details which can be used to trace them. This can be helpful from an investigative point of view." "Another thing that people need to check is how long the app has been in use. If it's a very new app, then they should not consider investing in it as it is a clear red flag," he added.

26
Day in September when the app stopped working