Zebpay warns: Fiat Withdrawals could become ‘Impossible’

With coming date for India’s banking ban on the cryptocurrency sector, Zebpay - India’s large exchange - is warning that users` fiat deposits could be affected
25 June 2018   354

One of India’s biggest crypto firms, Bitcoin wallet and exchange platform Zebpay,  has alerted its clients that their fiat rupee withdrawals could cease altogether in the near future, in accordance with the Reserve Bank of India’s (RBI) recent ban. On April 5th, the central bank issued a circular mandating regulated financial establishments including domestic banks to forbid services to crypto businesses like exchanges. The central bank mandated a three-month deadline and it’s plausible that cryptocurrency exchanges could see their bank accounts closed by July 5.

In this case, the users will no longer be able to withdraw their deposited rupees, India’s fiat currency, from crypto exchanges. In a statement on Saturday (first published on Thursday), Zebpay claimed:

In light of that [RBI circular], please note that if Zebpay bank accounts are disrupted, rupee deposits and withdrawals will become impossible. This can cause discontinuation of crypto trade based on rupees, or at least cause significant price movements.
Cryptocurrency Exchange, India

Definotely, the exchange pointed out that the clients will only be able to resume withdrawing their fiat deposits if “Zebpay has banking services that permit such withdrawal” after the July 5th deadline has passed.

Zebpay warning on Twitter
Zebpay warning on Twitter

In a related-FAQ, the company claimed its ‘present intention is to let crypto-INR pairs” after their bank accounts are shut to allow users acquire crypto with their frozen fiat deposits. Nevertheless, Zebpay alerted it “cannot guarantee that we will continue the crypto-INR trade pairs forever”, stating it’s unable to currently “fathom all the consequences” of the looming banking blackout. 

The central bank revealed earlier this month that it had processed no research nor consulted any opinions from experts or the government prior to enforcing the arbitrary banking prohibition on the crypto sector.

Crypto Billionaire to Lost 5.5k BTC Due to Fraud

Thai scammers convinced 22 yo Finnish crypto billionaire to invest in their 'investment' scheme
13 August 2018   256

The 22-year-old cryptocurrency millionaire lost more than 5,500 bitcoins after taking part in the investment scheme in Thailand. The case attracted public attention because of the possible participation of a Thai actor. This is reported by Bangkok Post.

A group of scammers in June 2017 persuaded Finnish businessman Aarni Otawa Saarimaa to invest in several Thai securities, a casino in Macau and a crypto currency called Dragon Coin.

Scammers claimed that Dragon Coin could be used in Macau casinos. In addition, they brought Saarimaa to this casino to demonstrate the legitimacy of their project. Saarimaa transferred 5 564 BTC to fraudsters.

In January, without receiving any income for his investments, Saarimaa filed a complaint with the Crime Suppression Division's (CSD), along with his local business partner, who believed that this investment scheme was fraudulent.

CSD began to investigate the case and stated that the group made no investment for Saarimaa, instead transferring all the bitcoins to Thai baht and placing these funds on seven bank accounts.

Although it is not clear when exactly the scammers sold the bitcoins, CSD announced that they raised about 800 million baht or about 24 million dollars.

Then followed a months-long investigation, according to which CSD began to suspect that the Thai film actor Jiratkisit "Boom" Jaravijit also took part in the fraudulent scheme - he was arrested last Wednesday.

In addition, the CSD stated that it suspects the actor's brother, Princess Jaravijit, as the "instigator" of this entire scheme. He left Thailand, traveling to South Korea, and then to the United States. According to the Bangkok Post, CSD is currently working with the US to track him down.