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The $47 Million Encryption Scam in Sri Lanka: What You Need to Know

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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 t

The $47 Million Encryption Scam in Sri Lanka: What You Need to Know

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

As per reports, the Central Bank of Sri Lanka is preparing to file a lawsuit against a group of nine individuals who are believed to have organized a $47 million encryption scam. The scam involved promoting an encryption project called Sports Chain and a related coin which, in reality, never existed. The suspects were able to defraud over 8000 Sri Lankans of about 15 billion rupees (approximately $46.6 million).

How the Scam Was Organized

The Ponzi scheme involved promoting an encryption project that drew in investors from across the country. The project called Sports Chain promised investors that they would receive a high return on investment, and that they would benefit from owning the encrypted coin. The encryption was marketed through social media, emails, and seminars, making it look like a legitimate investment.

The Warning Signs

Last year, Al Jazeera Television investigation unveiled suspicious activities in connection to the project. After the investigation, the local authorities initiated an inquiry that has led to arrests and the uncovering of the Ponzi scheme. The authorities have since put together a case against the suspects and filed charges in court.

The Consequences

The Ponzi scheme’s organizers are facing an extensive trial, where they will defend themselves against the charges of fraud. The suspects were detained in 2022 but were later released on bail in December. FCID claims that the fraudsters invested some of the funds received from the victims in expensive vehicles, and luxury apartments located in Colombo, Sri Lanka.

The Aftermath

The Ponzi scheme’s victims are seeking compensation, and this has prompted the involvement of the Central Bank of Sri Lanka. The bank is taking legal action against the suspects to recover the lost funds and to prevent similar scams from happening. As the trial starts, Sri Lankan citizens can only wait and see if the alleged perpetrators will receive justice.

Conclusion

The Sports Chain encryption project may have scammed many Sri Lankans, and the organizes of the project are now facing the full force of the law. Fraudsters often employ fraudulent schemes exploiting investors’ inherent trust and greed in the hope of realizing illicit financial gains. With the advent of cryptocurrencies such as Sports Chain, Ponzi schemes, and other scams are increasingly being committed globally, making it necessary for citizens and authorities alike to exercise due diligence.

FAQs

Q: What was the Sports Chain project that was involved in the scam in Sri Lanka?

A: The project was an encryption project that the suspects promoted, promising high returns on investment through owning their encrypted coin.

Q: Who are the victims in the Sri Lankan Ponzi scheme?

A: Over 8000 Sri Lankan citizens were defrauded of about 15 billion rupees.

Q: What is the role of the Central Bank of Sri Lanka in the case?

A: The central bank is taking legal action in a bid to recover the lost funds and prevent similar scams from happening in the future.

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