The promoter of iCom Tech has been sentenced to nearly six years in prison for orchestrating a large-scale cryptocurrency Ponzi scheme. Investors were lured with promises of high returns, resulting in the embezzlement of crores of rupees. During the trial, it emerged that the accused used luxury cars and extravagant events to build a credible image and deceive investors into believing the scheme was legitimate. iCom Tech attracted people by offering investment opportunities in the cryptocurrency sector, but it was a fraudulent operation where returns to earlier investors were paid using the funds of new investors, a classic Ponzi scheme. Such schemes may provide temporary gains but ultimately cause significant losses to investors. Incidents of fraud in the cryptocurrency market have increased due to the sector’s unregulated nature, posing risks to investors. Governments and financial institutions are intensifying oversight and regulations to ensure investor protection. With the sentencing of iCom Tech’s promoter, public caution regarding crypto investments is expected to rise. Experts advise investors to conduct thorough research before investing in cryptocurrencies and to avoid schemes that promise unusually high returns.
Source: decrypt
