WazirX denied its involvement in the scam and maintained that it followed strict guidelines; in another case, the trading platform was served a show-cause notice from the ED. The Cyber Crimes Division of the Hyderabad City Police has arrested a person for allegedly cheating several people to the tune of Rs 3,14,526 online on the pretext of selling cryptocurrencies. Based on a complaint by Manish Reddy, a resident of Hyderabad, the police arrested Bengaluru resident Akshay Gowda and booked cases under Sec 66D of the Information Technology Act 2000 and Sections 419, 420 of the Indian Penal Code. Sec 66D of the IT Act 2000: Punishment for cheating someone by personation using a computer resource. Sec 419 and 420 of the IPC: These two sections deal with offences related to cheating and dishonestly inducing delivery of property. Sec 420 warrants imprisonment that may extend to seven years. According to Avinash Mohanty, Joint Commissioner of Police in the Detective Department of the Cyber Crimes Division, Gowda allegedly befriended cryptocurrency traders through Binance and WazirX websites. "Initially the accused sold bitcoins to the online traders by receiving money to his bank account. After selling bitcoins 2 to 3 times, he would gain the confidence of them and starts offering them huge commission on buying bitcoins. Believing the version of the accused, the victims have transferred huge amount to the accused. After receiving huge amount, when the victims called to the accused, he stopped responding to their calls & messages and cheated them,"…
