Users of wallet service Bitcoin India are in shock after their accounts were locked. Since more than a month now, with the platform saying it was looking into the problem.
Many of the accounts that had fiat and crypto balances worth Rs 50 lakh are showing zero balance now. The action has affected traders willing to make money from cryptocurrency trading.
Durgesh Pandey, a cryptocurrency trader from Mumbai with a Bitcoin India account, told FactorDaily,
“I have around Rs 10 lakh in cash and Rs 30 lakh worth of cryptocurrencies locked in my account since November. I could have easily made Rs 5 lakh in profit if I was able to access and trade in my account”.
The company, in Andhra Pradesh’s Prakasam district is one of the platforms that supports trading of multi-assets. It is including Ether, Bitcoin, Litecoin and Dash. It also offers mining subscription plans.
Cryptocurrencies are illegal in India, and there was a recent crackdown on services by the regulators on tax evasion claims. Recent reports also said India’s Income Tax department’s would issue notices to 4 to 5 high networth individuals (HNI) trading cryptocurrencies.
The firm was found by Sykam Ramakrishna, who says on his Facebook page that he is the Reddy Tamil Nadu state secretary and spokesperson of the YSR Congress Party.
The lockout start in September with users receiving messages and pop-ups of being log out of their accounts. Due to suspicious activity or exceeding trade limits. Investors say no clause in the agreement with Bitcoin India touched on limit on trades.
Devendra Singh Bisht, a Delhi-based networking engineer said,
“I had joined Bitcoin India because they showed better rates for cryptocurrencies and had also offered more cryptocurrencies to trade. We were also able to do multiple trades and company had said that we were allowing to do unlimited trades on the platform”.
The company told him he had exceeded his buy-and-sell limit. Although it was not clear how many were locked out, FactorDaily reviews three three WhatsApp groups of investors complaining of being lock out.
Cryptocurrencies have had the best year, recording a jump of $2.18 billion to more than $300 billion in market cap. Bitcoin market cap has risen from $16 billion to more than $2000 billion in the same period. Rise in cryptocurrency trades in India, like anywhere else, have attracted hackers too. For instance, a Bengaluru techie said he lost Rs. lakk worth of Bitcoins to hackers. Many also fell victims to the Bitcoin ponzi scheme run by Amit Bhardwaj through Gainbitcoin company.
Mumbai Police arrested 23 people relating to OneCoin dealings and said promoters amassed nearly Rs 75 crore. Police also recorded a case against the founder of ATC Coin Subhashchand Jewria. However, it is for illegally collecting and diverting funds around Rs 85 crore in five months.