While the actions of the Reserve Bank of India threaten the viability of full-fledged crypto-currency companies, they also have a certain positive effect, in particular, in the struggle against fraudsters.
Indian police arrested two suspects in the appropriation of 300 million rupees ($ 4 million), owned by 1,800 investors, according to Press Trust of India (PTI).
The defendants created a crypto-exchange company called "Ripple Future" and promised to triple the deposits of investors for 250 days. Daily and weekly payments plans were available too. The leadership of Ripple Future stated that the company is based in the US, but the police managed to establish that it was operating from the Indian city of Ghaziabad.
A representative of the law enforcement agency said that the suspects were arrested after about 50 investors had complained about non-payment of funds, while the total number of victims of the scheme is much greater. Two men are accused of several articles of the Penal Enforcement Code of India. One of the accomplices is still wanted by the police.
The law enforcement agencies did not specify whether any role played by the XRP's crypto currency in the activities of Ripple Future.