The Supreme Court granted bail to an accused in a cryptocurrency scam, imposing a condition to deposit Rs.35 lakh. The court emphasized that the bail would be subject to compliance with this financial requirement. The case involves allegations of fraudulent crypto transactions and investor deception. The ruling highlights the judiciary’s approach to balancing legal proceedings with financial safeguards.
New Delhi: The Supreme Court granted bail to an accused in a cryptocurrency scam in Raipur, Chhattisgarh, on the condition of a security deposit of Rs 35 lakh within six months.
A bench comprising Justices J.B. Pardiwala and R. Mahadevan noted that the trial for this case would take a considerable amount of time and mentioned that the accused is involved in an economic offense affecting approximately 2,000 investors.
The bench stated,
“We are convinced that the appellant deserves to be released on bail, subject to certain terms and conditions as may be imposed by the trial court,”
According to the accused’s counsel, the total amount involved in the alleged scam was around Rs 4 crore, with Rs 35 lakh attributed to the appellant.
The court mentioned in its judgment dated February 18,
“For the purpose of bail and in light of the specific facts and circumstances of the case, we direct the appellant to deposit Rs 35 lakh with the trial court within six months,”
The bench felt “compelled” to impose this condition given the nature of the case, stating,
“We are aware that we have criticized high courts for imposing such conditions…”
The court also warned that if the amount is not deposited within the specified six months, the bail would be “automatically canceled.”
Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates on decentralized blockchain technology. Unlike traditional currencies, cryptocurrencies are not controlled by a central authority, such as a government or bank. Popular cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Ripple (XRP).
Key Features of Cryptocurrency:
- Decentralization: Operates on a blockchain network, reducing reliance on central authorities.
- Security & Anonymity: Transactions are encrypted, ensuring privacy and security.
- Limited Supply: Many cryptocurrencies have a fixed supply, making them deflationary.
- Borderless Transactions: Can be sent anywhere globally with minimal fees.
Also Read: Bitcoin scam | Karnataka HC Denies Bail to Senior Police Officials
Common Uses:
- Investment: Many people trade or hold cryptocurrencies as digital assets.
- Payments: Some businesses accept crypto for goods and services.
- Smart Contracts: Platforms like Ethereum allow automated contracts without intermediaries.
Risks & Scams:
- Volatility: Prices can fluctuate drastically.
- Scams & Frauds: Ponzi schemes, phishing attacks, and fake exchanges are common.
- Regulatory Uncertainty: Governments worldwide are still developing regulations for crypto.