Dealing in Cryptocurrency Dissolves Recognised Money into the Untraceable, Says Delhi HC
The Delhi High Court recently observed that dealing in cryptocurrency has profound implications for the country’s economy, as it dissolves recognised money into the dark, unknown, and untraceable.
"For, economic offences, unlike most conventional bodily offences, are committed with elaborate planning and expertise. Especially, dealing in cryptocurrency has profound implications on the economy of our country by way of dissolution of recognised money into the dark unknown and untraceable money," the Court said.
Justice Girish Kathpalia made these observations while dealing with the case of Umesh Verma, accused in cryptocurrency fraud.
Verma had moved the court seeking regular bail in an FIR registered with the EOW Police Station under Sections 406, 409, 420, 467, and 120B of the IPC.
While denying bail to the man, the court said, "The allegations against the accused/applicant in this multi-victim scam are quite serious, more so in the light of his antecedents of involvement in as many as 13 more cases of similar nature, list whereof is on record and not challenged by the accused/applicant."
Before the High Court, the complainant had alleged being duped into investing Rs 5 lakh in a cryptocurrency firm run by Umesh Verma, who had assured him of twenty to thirty per cent monthly returns. However, no returns came.
The accused claimed that the crypto market had crashed, and the firm’s bank accounts were frozen. Following this, he moved his operations to Dubai. It later emerged that over Rs 50 crore had been collected from nearly 61 victims.
"The accused/applicant prima facie seems to have duped 61 investors after painting a rosy picture of getting them returns of 20% to 30% on their investments in cryptocurrency, which process he continued against the gullible persons even after derecognition of cryptocurrency. And there can be revelation of more such defrauded persons, as the ongoing investigation is unfolding, having reached the number of defrauded investors from 48 to 61," the Court said.
Accordingly, the court dismissed the bail application and directed the accused to surrender before the Investigating Officer or the trial court forthwith.
“The accused/applicant, who is on interim bail granted by the predecessor bench, shall surrender before the IO or the trial court forthwith,” the Court ordered.
For Petitioners: Mr. Raj Shekhar Rao, Sr. Advocate with Mr. Tarun Gaur, Ms. Vishakha Gupta and Mr. Shubham Arora, Advocates.
For Respondents: Mr. Ritesh Kumar Bahri, APP for the State, with Ms. Divya Yadav, Advocate with SI Pankaj, EOW. Mr. Archit Kaushik, Advocate for Complainant.
Case Title: UMESH VERMA versus STATE