Cryptocurrency news from India is getting a new color. According to the Hindustan Times, the largest political party of the country, the Indian National Congress (INC), accused the ruling party Bharatiya Janata Party (BJP) of organizing a fraudulent scheme using bitcoin in the amount of $726 million to $12.78 billion.
The charges were brought against the BJP unit in Gujarat. Shaktisin Gohil, the press secretary of the INC, says that the leadership of the local cell transferred “dirty” money to the cryptocurrency with the help of the so-called “hawala” – an informal settlement system that allows transferring money through one-off notifications and confirmations via e-mail, fax or phone calls and often associated with money laundering.
Gohil said that he sent a statement to the police, but law enforcement officers are slow to do anything because of political pressure. “We demand to involve the Supreme Court and conduct an impartial investigation of this confusion around the” mega bitcoin-scam” in order to find out the truth,” he said in a conversation with the local press.
INC claims that a “mega bitcoin-scam” involves a certain Shaileş Bhatt, whose name was previously mentioned in the news in connection with other criminal schemes using cryptocurrency. Bhatt invested in the Bitconnect’s cryptocurrency pyramid, but when payments ceased, he decided to return the money by force. Even before the origin of the Bhatt’s cryptocurrency, he accused the local police officers of stealing him and extorting the bitcoins.
Law enforcers of the State of Gujarat have previously found out that a representative of the local cell of the BJP was involved in another fraudulent scheme using cryptocurrency. The legislator set out on the run, and the INC states that it relates to the episode described above. The INC also claims that it promised to disclose the names of all BJP leaders associated with the scheme if arrested.
In addition, the party believes that the Indian monetary reform of 2016, the pretext of which was to overcome the negative phenomena of the shadow economy, was actually initiated by the BDP in search of ways to legalize its criminal proceeds, a large part of which was converted into a cryptocurrency.