The OPID Court in Balasore has sentenced Nilesh Kumar Kar, the key accused in a massive crypto investment fraud, to seven years of rigorous imprisonment alongside a fine of Rs. 2.35 lakhs.
Upon failing to pay the fine, the convict will serve an additional two years of imprisonment.
The case dates back to April 2023, when Kar masterminded a nationwide Ponzi scheme disguised as a cryptocurrency mining platform under the banner of ‘Cloud-Fut.’ He misled over 400 individuals in Odisha, including the informant Mahamanya Jena, with false promises of hefty returns on their investments. Jena had deposited Rs 2,13,038, expecting returns of Rs 50,57,117. However, the website ceased functioning, leaving investors in despair and robbed of Rs.1.13 crore collectively.
Investigations revealed that ‘Cloud-Fut’ was a bogus website developed to mislead investors. Kar fabricated credentials like authorisation letters purportedly from the Reserve Bank of India to gain trust. He appointed members to collect crores from unsuspecting investors before shutting down the website, exposing the fraud.
The case was prosecuted under IPC sections 420, 467, 468, and 471, alongside violations under the IT Act and OPID Act, with Inspector Tapas Ranjan Sahu leading the investigation. The conviction marks a significant triumph against rising digital fraud in India.
