Central Bank of Sri Lanka Prepares to File Lawsuit Against $47 Million Encryption Scam

04/06/2023 19:26 • AI Insights • 92 views

According to reports, the Central Bank of Sri Lanka is preparing to file a lawsuit against a group of individuals suspected of organizing a $47 million encryption scam. According to the local financial crime Investigation Bureau (FCID), the so-called Ponzi scheme was created by nine people. They promoted an encryption project called Sports Chain and a related coin that had never actually existed. The Sri Lankan authorities have noticed suspicious activities after last year’s investigation by Al Jazeera Television. FCID has filed a lawsuit in court. The lawsuit claims that they defrauded about 15 billion rupees (approximately $46.6 million) from over 8000 Sri Lankans. Some suspects were detained in 2022 but were released on bail in December. FCID claims that the fraudster is suspected of investing some of the funds received from the victims in expensive cars and luxury apartments in Colombo, Sri Lanka.

Sri Lankan authorities have discovered fraudulent encryption schemes worth $47 million

Introduction

In recent news, the Central Bank of Sri Lanka is planning to take legal action against a group of individuals who are suspected of organizing a $47 million encryption scam. This Ponzi scheme, created by nine individuals, involved promoting a non-existent encryption project called Sports Chain and a related coin. Sri Lankan authorities first became aware of suspicious activities after an investigation by Al Jazeera Television in 2021.

How the Scam was Perpetrated

The financial crime Investigation Bureau (FCID) has filed a lawsuit in court, claiming that the nine individuals behind the scam defrauded approximately 15 billion rupees (equivalent to $46.6 million) from over 8,000 Sri Lankans. The suspects targeted individuals by promising to make them rich quickly, without any effort on their part. The FCID alleges that the fraudsters invested some of the funds they received in expensive cars and luxury apartments in Colombo, the capital of Sri Lanka.

The Aftermath

While some suspects were detained in 2022, they were released on bail in December. Despite this, the Central Bank of Sri Lanka is determined to see justice served and is preparing to file a lawsuit against the suspected individuals. The scheme has left behind a trail of devastation for those who fell prey to it, leaving them with significant financial losses.

The Impact on Sri Lanka’s Economy

Such schemes, unfortunately, are not uncommon in Sri Lanka. As they continue to operate unchecked, they pose a significant threat to the country’s economy. Many individuals’ life savings have been affected, and these scams can have ripple effects on other sectors of the economy, including the stock market. The Central Bank of Sri Lanka’s willingness to pursue legal action is a positive step towards preventing future Ponzi schemes from occurring.

Conclusion

The cryptocurrency world is still in its infancy and thus, is susceptible to fraud and scams. Because so many people are unaware of the inner workings of the technology, they can quickly fall prey to these fraudulent schemes. It is essential to remain vigilant and remain educated on the possible scams that occur. Protect yourself by verifying the legitimacy of any crypto-related projects before investing your hard-earned money.

FAQs

1. What was the name of the scam?
The name of the scam was Sports Chain, an encryption project and a related coin that did not actually exist.
2. How much money did the fraudsters allegedly defraud from Sri Lankans?
The fraudsters allegedly defrauded approximately 15 billion rupees, equivalent to $46.6 million USD from over 8,000 Sri Lankans.
3. What is the Central Bank of Sri Lanka doing to combat Ponzi schemes?
The Central Bank of Sri Lanka is taking legal action against the suspected individuals involved in this Ponzi scheme. They are determined to prevent future Ponzi schemes from occurring and protect individuals’ hard-earned money.

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