The Morris Coin Scam

Last Updated on 24 October 2020 by CryptoTips.eu

The Morris Coin scam is the most recent scam in the cryptocurrency sector in India. Its website defines it as a multi functional, next-generation cryptocurrency system. It claims it’s designed using cutting-edge smart technology. The project promises to be the first stable digital currency solely developed and marketed for an “E-commerce and Trading Industry.” Therefore, paying for goods and services gives its users freedom from interacting with traditional businesses.

As it turns out, the project is a scam. Laden with sweet words and high ROIs, the scheme has defrauded thousands of Indians, hundreds of thousands of dollars. Luckily, Indian authorities are being involved. The involvement was kick-started by someone outside the project who tipped off the Bengaluru district police chief Abdul Karim concerning the scam. Thus, filing a suo motu case against Nishad K, the main promoter under the Prize Chits and Money Circulation Schemes (Banning) Act 1978.

The Main Promoter

Media reports show that the police arrested the founder of Morris Coin in Kerala, India. The 36-year old Nishad K. got arrested because of cryptocurrency fraud charges. He ran the Ponzi scheme under three firms: Long Rich Technologies, Long Rich Global, and Morris Trading Solutions. Nishad worked as the managing director of a real company, Long Rich Technologies. However, a link is yet to be established between Nishad, Long Rich Technologies, and the scam.

Interestingly, during his arrest, he claimed that there was nothing illegal about the Morris cryptocurrency. However, Nishad did not list it on any crypto exchange platform. Consequently, this made it impossible to carry out any transactions.

Center of the Morris Coin Operations

Although its founder claims the coin is legit, it has no registered physical office as its headquarters except for a website. Also, there is no information about the project’s team members, such as its developers. Not even on its official website.

Moreover, the website’s only data is the home page stating Long Rich Technologies created it. But, those who care to do a little digging will notice the disconnection between Long Rich Technologies and Morris Coin. For example, Morris is crypto-oriented while Long Rich provides language and training courses.

With the arrest of its mastermind, securities authorities in India are tracing investors to collect more evidence. So far, no investor has filed any charges against Nishad. It seems he got their confidence when he paid them an interest of 0.5% to 3% every day on their investment.

How Investors Got In?

Blame it on the country. The Indian subcontinent views cryptocurrency as a clear long-term investment. Also, considering that the country’s fiat currency’s inflation rate is rising, there’s a need to protect the value of funds. Thus, making it easy for Nishad to lure investors. India seems to be plagued by crypto scams.

To get started, investors had to put in a minimum of 15,000 Rupees (around 200 dollar). After 300 days, they would start earning a minimum of 270 Rupees per day (around $ 3,60) for 300 days. The investors were also offered a 10-40 percent commission for every new investor they brought to the scheme.

Conclusion

Although the investors are yet to come forward, the project has all the symbols relating to past Ponzi schemes. The mouth-watering returns make it hard for investors to resist. Additional signs include significant incentives for bringing new members and the lack of important information on how it operates. Also, the fact that it’s not registered on any exchange raises critical red flags.

As much as cryptocurrency is a worthwhile investment, Ponzi schemes are on the rise. Henceforth, investors need to be careful where they invest their money. Also, government involvement will go a long way in preventing such fraudulent activities preying on investors’ naivety.