Indian law enforcement officers detained a resident of Mangalore, Karnataka, on suspicion of organizing the cryptocurrency pyramid Max Crypto Trading. With its help, more than 50 investors lost $200,000.

The investigation into Kunjathbail Mujib Sayyad was launched at the end of 2022. MAX App was available in Android app stores. The service guaranteed investors a profit and promised a refund within 150 days from the date of investment. Investors were offered a 2% commission for each attracted investor.

The founder of Max Crypto Trading claimed to have connections with major cryptocurrency traders. The project’s headquarters are located in the city of Ajman, in the United Arab Emirates, the project’s representatives claimed. According to law enforcement, the fraudster operated exclusively online, without having physical offices even in India.

According to complaints from victims, the Max Crypto Trading project initially paid investors profits in US dollars. However, already 50 days after the launch, Max Crypto Trading “evaporated”. In total, the crypto pyramid raised 1.66 crore Indian rupees (about $200,000) from 52 investors.

Majib Sayyad has been charged under Section 420 of the Indian Penal Code (fraud and theft of property). The offender is also charged with breach of trust and participation in a criminal conspiracy. Other members of the project team remain at large.

Recently, India’s Financial Intelligence Unit (FIU) fined the world’s largest crypto exchange Binance $2.2 million due to non-compliance with anti-money laundering (AML) regulations.