“First you invest.. Then make three other people you know invest.. Get them to invest three more from their circle..” Money is being extracted from people with this same concept.
If you look at the scam in the name of cryptocurrency in Hyderabad’s Kukatpally, it is the same. A company named XCSPL has collected crores of rupees. 4 lakh profit in 3 months with an investment of 1 lakh and took the money. Four times the profit was collected from one lakh to 10 lakhs from each person. The victims invested by borrowing, taking loans, and using credit cards.
As days passed and no profits came, the victims began to doubt. They kept pushing the company. This turned the fight bigger. The media fell on deaf ears. When asked for details, XCSPL company management did not respond properly. They tried to escape by saying that the case was filed.
A trap was set for the vulnerable unemployed youth. They sought initial investments from the employees. Being a working company, the employees invested because they were told that they would get four times the money. From there they were also invested by their acquaintances. They were given money by the people they knew, just as the managers told them that there would be trouble in their jobs. However, the victims came forward to the media after realizing that they were cheated as the money was not returned.