The Police yesterday (27) shed light on a massive financial fraud committed through a fake cryptocurrency investment scheme.
The Criminal Investigation Department (CID) had initiated probes after receiving a complaint about the scam, according to Police Spokesperson Senior Superintendent of Police (SSP) Nihal Thalduwa.
According to him, one Sri Lankan named Keerthi Bandara was arrested in connection with the incident. He is currently enlarged on bail.
Meanwhile, a Chinese national by the name of Zhang Kai and his partner have also been taken into custody over the scam. They were arrested at the Bandaranaike International Airport (BIA) in Katunayake on 12 September while attempting to fly out of the island.
The trio had reportedly set up a website called “Sports Chain”, which they used to lure investors by introducing it as a highly profitable cryptocurrency investment platform.
They had commenced their fraudulent operation in 2020 and run it as a Ponzi scheme, an investing scam that generates returns for earlier investors using the money obtained from new investors.
At least 8,000 Sri Lankans have been scammed by the three suspects and have swindled more than Rs. 14 billion, according to the police spokesperson.
Earlier reports revealed that professionals such as doctors, teachers, security personnel, and people from lower middle-income backgrounds have been affected by the scam.
Courtesy: The Morning