Delhi HC denied bail to a businessman in a crypto scam, warning that crypto dealings can dissolve legal money into untraceable funds. The court cited serious economic and legal concerns.
New Delhi: Today, on July 14, the Delhi High Court, on Monday, strongly expressed concerns about the impact of cryptocurrency on the Indian economy while rejecting the bail plea of a businessman involved in a multi-crore cryptocurrency scam.
The case was heard by Justice Girish Kathpalia, who stated that such illegal dealings had the potential to damage the country’s financial stability and security.
The court was dealing with the bail application of Umesh Verma, a businessman who was arrested in December 2020 in connection with a scam involving a Dubai-based cryptocurrency company, Pluto Exchange.
Although Verma had been out on interim bail, the court has now directed him to surrender either before the investigating officer or the trial court.
Justice Kathpalia said,
“Dealing in crypto currency has profound implications on economy of our country by way of dissolution of recognised money into the dark unknown and untraceable money.”
The judge emphasized that these activities result in recognised legal money being turned into untraceable funds, which poses a serious risk to the economic system.
The case against Verma involves serious allegations. According to the prosecution, Verma had promised investors high returns ranging between 20 to 30 percent on their cryptocurrency investments.
The court noted that
“The allegations against the accused in this multi-victim scam are quite serious, more so in the light of his antecedents of involvement in as many as 13 more cases of similar nature.”
This pattern of repeated offenses was viewed as a clear indication of criminal intent and not just a one-time mistake.
Justice Kathpalia further remarked on Verma’s conduct even after regulatory actions had been taken against cryptocurrency. He stated,
“The court prima facie noted that the accused duped 61 investors after ‘painting a rosy picture’ of getting them returns of 20 per cent to 30 per cent on their investments in crypto currency, the process which he continued against the gullible persons even after derecognition of crypto currency.”
This observation shows that the court found preliminary evidence indicating that Verma continued his fraudulent schemes even after it was clear that cryptocurrency operations were no longer officially recognised.
Highlighting the risk of allowing Verma to remain out on bail, the court expressed its concerns about his financial strength and the likelihood that he might flee from justice.
The judge said,
“The deep pockets of the accused, coupled with the nature and expanse of offence in the present case and 13 more cases with consequential possibility of long incarceration lends credence to the apprehension of prosecution that the accused is a flight risk.”
In addition to denying bail, the court also made a sharp observation regarding Verma’s intention. Justice Kathpalia said,
“His act of collecting money even after de-recognition of crypto currency showed mala fide.”
This means that the court found his continued collection of funds from investors, even after crypto was no longer valid, to be done with bad intent.
Case Title:
Umesh Verma vs State
Read Judgement:
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