Nilesh Kumar Kar was sentenced to seven years of rigorous imprisonment by a Balasore court for defrauding investors in a crypto scam. He misled individuals into investing in a fake platform named ‘Cloud-Fut’, resulting in losses of approximately Rs 1.13 Crore. The court found him guilty of cheating and forgery, and imposed a fine of Rs 2.35 lakhs.
In a significant ruling, a Balasore court sentenced Nilesh Kumar Kar to seven years of rigorous imprisonment for his role in a crypto investment scam that defrauded a local investor. The Odisha Protection of Interests of Depositors (OPID) court found him guilty of multiple charges, including cheating and forgery, under various sections of the Indian Penal Code and the Information Technology Act. Additionally, Kar was slapped with a fine of Rs 2.35 lakhs, with a two-year jail term set for non-payment.
This case came to light following a complaint from Mahamanya Jena, a resident of Sahadebkhunta, who alleged that he was misled into believing that he would earn significant returns by investing in a fraudulent app called ‘Cloud-Fut’. Jena claimed that he invested Rs 2,13,038 between January and March 2023, but when he tried to withdraw his promised returns of over Rs 50 lakh, he discovered the platform had ceased operations.
The so-called ‘Cloud-Fut’ website was revealed to be a scam designed to lure individuals into crypto investments. Initially, potential investors were enticed with the promise of high returns for a minimal investment of Rs 665, with assurances of daily earnings. All the allure led to a dismal conclusion when the website shut down, leaving hundreds of investors in the lurch. Kar, as the brain behind this scheme in Balasore, reportedly coaxed over 400 individuals across Odisha to join, collecting vast sums under false pretenses.
As per the investigation, Kar had even presented fake documents supposedly authorised by the Reserve Bank of India to instil confidence among his victims. With an operational model similar to that of a Ponzi scheme, the scam exploited the legitimate appeal of cryptocurrency to deceive investors.
Special Public Prosecutor Pranab Kumar Panda led the prosecution, while Inspector Tapas Ranjan Sahu handled the case investigation. The complexities of scams like this highlight the ongoing vulnerability of investors in digital currency markets and point to the urgent need for heightened scrutiny and regulation in this burgeoning field. With this conviction, the court hopes to send a clear message to potential fraudsters.
