HYDERABAD: The cryptocurrency fraud involving COINZX, a firm with alleged Dubai links, has widened, with the Mumbai police now booking a case following an earlier case with Hyderabad Central Crime Station. Investigators estimate the total scam amount could reach Rs 200 crore.
Hyderabad Central Crime Station (CCS) police previously arrested Ravi Mahaseth, the managing director of COINZX, in connection with the case. A Hyderabad Sessions Court later granted him bail. His associate, Ramesh Puri, was also arrested and is currently lodged in Hyderabad jail.
A week ago, the Kasturba Marg police in Mumbai registered a case against Mahaseth and five others for allegedly deceiving investors into putting money into a cryptocurrency launched by COINZX.
According to the complainant in Mumbai, multiple meetings were held where he and other investors were persuaded to invest large sums in COINZX. The company marketed itself as “India’s Bitcoin” and presented high returns on investment, gaining investors’ trust by claiming to have the backing of Mahaseth’s large forex trading business.
Hyderabad Case and Court Proceedings
The first complaint against COINZX in Hyderabad was filed on February 11 by Jitender Puri, a resident of Goshamahal, who claimed he lost Rs 5 lakh. Several investors in Hyderabad collectively invested around Rs 2 crore.
Police alleged that Mahaseth and his associates induced victims to invest in COINZX, only for them to later realise that the company ceased operations. A case was booked under various sections of the Indian Penal Code (IPC) and the Telangana State Depositors Act.
Mahaseth, a 40-year-old resident of Malad East, Mumbai, was granted bail by a Hyderabad Sessions Court on February 24. He claimed his arrest was illegal and that he was not informed of the grounds of arrest, nor was his family notified. The prosecution refuted these claims, stating that the arrest was conducted lawfully and his family was informed via telephone, although no call records were provided to substantiate this.
Mahaseth also cited health concerns, stating he recently underwent open-heart surgery and was subsequently admitted to Gandhi Hospital. The court, considering his medical condition, granted bail on the condition that he would not leave the jurisdiction of Hyderabad and Ranga Reddy districts without prior permission, would cooperate with the investigation, and would not tamper with witnesses. He is required to report to the CCS, Hyderabad, on the second and fourth Saturday of every month until the charge sheet is filed.
Additionally, once his health condition improves and he is discharged from the hospital, Mahaseth must surrender to the investigating officials for five days of police custody to assist in the probe. The prosecution sought police custody, but the court deferred the request due to his medical state.
Past allegations and expanding investigation
Investigators have linked Mahaseth to other investment firms, including FX & Smart Bull, Smart X, and Samruddhi Multi Trade Pvt Ltd, which are suspected of running similar fraudulent schemes. The earliest known case against COINZX was registered in January 2023 when a victim alleged he invested $500 after attending a seminar on multi-level marketing.
With cases now booked in both Hyderabad and Mumbai, law enforcement agencies are expanding their probe. Hyderabad police informed Mumbai cops regarding the arrest of the accused.
