Pune: In perhaps the first such case related to cryptocurrency frauds in the state, the Dattawadi police on Tuesday arrested the proprietor of a software company for duping several persons by investing their money in bitcoins and other cryptocurrencies and not returning their initial amount nor the profits.The police have so far registered four cases against the techie for collectively duping these people to the tune of Rs 42 lakh.A 46-year-old woman entrepreneur from Pune-Satara Road lodged a complaint with the Dattawadi police stating that a techie cheated her of Rs 13 lakh since August 2017.Senior inspector Anil Patil of Dattawadi police told TOI that they have arrested Akash Kantilal Sancheti, 27, a resident of Satara Road on Tuesday."Sancheti ran a small software company in Sadashiv Peth. He is an engineering graduate. A court has ordered his remand in police custody till January 20. In the last two days, we have received four more complaints. The total amount of the fraud in these five cases is collectively worth Rs 42 lakh. More cases are expected," Patil added.Apart from the cheating charges, police have also invoked provisions of the Maharashtra Protection of Interest of Depositors (MPID) Act.The woman, in her complaint, stated that Sancheti approached her in August 2017 and promised her handsome returns on her investment in bitcoins and other virtual currencies.She transferred money to the techie via online banking using RTGS. In four months, she had transferred Rs 13 lakh to his account, which the techie claimed he invested in bitcoins. However, he did not return her initial amount nor the profit on her investment, the complaint said.Patil said when the woman started investing in bitcoins, it was gaining in value. But later, bitcoin prices crashed and this led to losses. " Sancheti then attempted to divert the money to another virtual currency which also crashed," he added.Hurdles In InvestigationsPolice said Sancheti has 24 bitcoins worth Rs 2.09 crore and some ethereum, a global cryptocurrency, worth Rs 61 lakhInvestigators said all this looked good in the virtual form but it is not known how one can encash themPolice have decided to seize these virtual currencies to repay the investorsThey have advised investors to be cautious while trading in cryptocurrenciesProne to common attacksCryptocurrencies can feel secure as they often anonymize digital transactionsBut they are susceptible to scams if victims forgot to change default login credentialsBy spying on bitcoin wallet addresses in copy/paste clipboards, scamsters can divert fundsGovernment's TakeThe government has cautioned people against the risk of virtual currenciesIt said they not legal tender and do not have any regulatory permission or protection in IndiaAuthorities said virtual currencies are not backed by government fiatThere has been a surge in interest in such instruments, fuelled by astronomical returns

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