Bhubaneswar: Commissionerate police on Friday raided a hotel near Vani Vihar here where a conference was underway to lure people to invest in Bitcoin.
The police detained two persons including a businessman from Gujarat. He was identified as Hitesh Patel. However, taking the advantage of the chaos triggered during the police raid, the potential investors fled from the spot.
Senior police officials said both the detained persons could not produce any documents suggesting that they possessed any certificate or licence to hold such a meeting for collecting money from people.
Earlier on March 23, the Commissionerate police had also arrested two youths for duping some people of more than Rs 15 lakh from people by luring them to invest in Bitcoins. It was said to be the first Bitcoin fraud in the State.
Notably, regarding Bitcoin, the Reserve Bank of India (RBI) has said, “There is a real and heightened risk of investment bubble of the type seen in Ponzi schemes which can result in sudden and prolonged crash exposing investors, especially retail consumers losing their hard-earned money. Consumers need to be alert and extremely cautious to avoid getting trapped in such Ponzi schemes.”