The Wayback Machine - https://web.archive.org/web/20190711044954/https://www.independent.co.uk/life-style/gadgets-and-tech/news/bitcoin-scam-bitconnect-cryptocurrency-regal-coin-a8945291.html
An Indian businessman who made a fortune from an alleged cryptocurrency scam is on the run from authorities, according to local reports.
Divyesh Darji is wanted by Gujarat police for promoting a cryptocurrency called Regal Coin, The Times of India reported, which promised customers a 5,000 per cent return on investments.
Mr Darji had previously been involved with Bitconnect, a cryptocurrency firm that gained notoriety in January 2018 after it collapsed in spectacular fashion.
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After being suspected of operating as a Ponzi scheme, Bitconnect was forced to shut down its cryptocurrency exchange and lending operations due to legal pressure from regulators.
It resulted in the Bitconnect Coin cryptocurrency crashing in value to below $1, having previously traded close to $500.
Bitcoin's volatile history in pictures
Show all 8
Bitcoin's volatile history in pictures
1/8 Satoshi Nakamoto creates the first bitcoin block in 2009
On 3 January, 2009, the genesis block of bitcoin appeared. It came less than a year after the pseudonymous creator Satoshi Nakamoto detailed the cryptocurrency in a paper titled 'Bitcoin: A peer-to-Peer Electronic Cash System'
Reuters
2/8 Bitcoin is used as a currency for the first time
On 22 May, 2010, the first ever real-world bitcoin transaction took place. Lazlo Hanyecz bought two pizzas for 10,000 bitcoins – the equivalent of $90 million at today's prices
Lazlo Hanyecz
3/8 Silk Road opens for business
Bitcoin soon gained notoriety for its use on the dark web. The Silk Road marketplace, established in 2011, was the first of hundreds of sites to offer illegal drugs and services in exchange for bitcoin
4/8 The first bitcoin ATM appears
On 29 October, 2013, the first ever bitcoin ATM was installed in a coffee shop in Vancouver, Canada. The machine allowed people to exchange bitcoins for cash
REUTERS/Dimitris Michalakis
5/8 The fall of MtGox
The world's biggest bitcoin exchange, MtGox, filed for bankruptcy in February 2014 after losing almost 750,000 of its customers bitcoins. At the time, this was around 7 per cent of all bitcoins and the market inevitably crashed
Getty Images
6/8 Would the real Satoshi Nakamoto please stand up
In 2015, Australian police raided the home of Craig Wright after the entrepreneur claimed he was Satoshi Nakamoto. He later rescinded the claim
Getty Images
7/8 Bitcoin's big split
On 1 August, 2017, an unresolvable dispute within the bitcoin community saw the network split. The fork of bitcoin's underlying blockchain technology spawned a new cryptocurrency: Bitcoin cash
REUTERS
8/8 Bitcoin's price sky rockets
Towards the end of 2017, the price of bitcoin surged to almost $20,000. This represented a 1,300 per cent increase from its price at the start of the year
Reuters
1/8 Satoshi Nakamoto creates the first bitcoin block in 2009
On 3 January, 2009, the genesis block of bitcoin appeared. It came less than a year after the pseudonymous creator Satoshi Nakamoto detailed the cryptocurrency in a paper titled 'Bitcoin: A peer-to-Peer Electronic Cash System'
Reuters
2/8 Bitcoin is used as a currency for the first time
On 22 May, 2010, the first ever real-world bitcoin transaction took place. Lazlo Hanyecz bought two pizzas for 10,000 bitcoins – the equivalent of $90 million at today's prices
Lazlo Hanyecz
3/8 Silk Road opens for business
Bitcoin soon gained notoriety for its use on the dark web. The Silk Road marketplace, established in 2011, was the first of hundreds of sites to offer illegal drugs and services in exchange for bitcoin
4/8 The first bitcoin ATM appears
On 29 October, 2013, the first ever bitcoin ATM was installed in a coffee shop in Vancouver, Canada. The machine allowed people to exchange bitcoins for cash
REUTERS/Dimitris Michalakis
5/8 The fall of MtGox
The world's biggest bitcoin exchange, MtGox, filed for bankruptcy in February 2014 after losing almost 750,000 of its customers bitcoins. At the time, this was around 7 per cent of all bitcoins and the market inevitably crashed
Getty Images
6/8 Would the real Satoshi Nakamoto please stand up
In 2015, Australian police raided the home of Craig Wright after the entrepreneur claimed he was Satoshi Nakamoto. He later rescinded the claim
Getty Images
7/8 Bitcoin's big split
On 1 August, 2017, an unresolvable dispute within the bitcoin community saw the network split. The fork of bitcoin's underlying blockchain technology spawned a new cryptocurrency: Bitcoin cash
REUTERS
8/8 Bitcoin's price sky rockets
Towards the end of 2017, the price of bitcoin surged to almost $20,000. This represented a 1,300 per cent increase from its price at the start of the year
Reuters
Mr Darji had served as the head of Bitconnect's India operations, and was accused of netting millions of dollars from investors.
Indian police said Regal Coin offered similarly false promises to investors, with huge payouts to people able to recruit more users.
The cryptocurrency suffered a similar fate to Bitconnect, experiencing a price surge to nearly $90 in late 2017 before crashing.
Regal Coin is currently worth less than $0.01 according to the CoinMarketCap cryptocurrency price index.
Alleged victims have reported to police losing a combined INR 45 million ($650,000) through their investments in Regal Coin.
Mr Darji was released on bail last month after being charged with violating the Gujarat Protection of Investors Deposit Act and The Prize Chit Money Circulation Scheme Banning Act, according to the report.
The Criminal Investigation Department (CID) in Gujarat told the paper that he is currently on the run.
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