Vijayawada: Chain marketing in the name of Cryptocurrency sweeping Telugu States

Vijayawada: Beware people of Telugu States! The latest multilevel marketing scheme in the name of cryptocurrency is sweeping the two Telugu-speaking States of Andhra Pradesh and Telangana of late.

Already several thousands of people, if not lakhs, who purchased several types of cryptocurrency, are looking at them and satisfying themselves with the news on the Internet about its value running into several millions of rupees. The Reserve Bank of India (RBI) warned the Indian banks not to entertain transactions in cryptocurrencies. With the dubious notoriety of cryptocurrencies like Bitcoin, of late, some enterprising racketeers launched multilevel marketing in the name of cryptocurrency in the two Telugu-speaking States of Andhra Pradesh and Telangana.

It is apt to recall here that the chain marketing or multilevel marketing or referral marketing or network marketing is an illegal activity banned by Prize Chit and Money Circulation Schemes (Banning) Act, 1978, in the country.

The Reserve Bank of India gave clear directions to the commercial banks throughout the country not to entertain transaction activities in any cryptocurrency. The racketeers now have launched chain marketing in the name of Zeniq claiming it to be a cryptocurrency which is virtually eradicating the lifetime savings of millions of gullible people in the Telugu States. Scam reviews and alerts website www.tbbob.com warn people that they have found several highly suspicious things about Zeniq.

However, the racketeers are simply increasing the value of the Zeniq cryptocurrency on their website every month and claiming its value is growing. If anyone invests Rs One lakh in Zeniq coin in November they will make the investor happy by showing its value as Rs 1.1 lakh on their website the next month. The reality is the Zeniq coin cannot be realised anywhere. This racket appears to be growing faster as the scheme operators run a chain marketing with this. Those who are making others invest will be getting enormous benefits as commission. The website run by the Zeniq organisers says 69 per cent of the investment collected is allocated for giving commissions. It is clear that Zeniq is created only to run chain marketing and dupe people as the company straight away enjoys 31 per cent profit as their cost of coin is negligible. Those who simply invest in it believing its value will grow in future will become the victims.

Like every chain marketing strategy, these crooks are targeting housewives, pensioners and students.

It is apt to mention here that in the near past, a cryptocurrency "One coin" cheated the investors of a whopping Rs one lakh crore and its founder vanished into thin air. Not surprisingly there are hardly any complaints against it since few people prefer to go to the police against such scams.

Raghupathi Nageswara Rao, the main promoter of Zeniq coin in Telugu states was promoter of various chain marketing programmes earlier. He is reported to have earned a commission over Rs 2 crore in just two months from Zeniq.

He also claims one person from Trissur in Kerala earned over Rs 60 crore from Zeniq so far. Currently, Raghupathi is on bail in a similar case by the Economic Offences Wing at Cyberabad.

The racketeers claim that Zeniq is owned by the Dubai royal family which is far from the truth. It is high time the police plunged into action against Raghupathi Nageswara Rao and his crime syndicate.