A gang of youths, who were arrested recently, used to lure people in the transaction of cryptocurrencies through virtual wallets at a Facebook-based dollar selling group, the Detective Branch (DB) of police said.
Then, after being lured to gain a handsome profit, people from many countries, including Bangladesh, would buy virtual currencies such as Bitcoin and USDT, which is illegal in Bangladesh.
During cyber patrolling, the cyber and special crime unit of DB noticed that a gang was luring people at a dollar selling group on their Facebook page for trading virtual currencies.
Later on Monday, the cybercrime unit arrested three people – Mehedi Hasan, Sohrab Hossain and Mokhdum Nabin – from Bogura for illegal trade of cryptocurrency through the virtual sphere.
DB police said they identified Mehedi Hasan as the leader of the cryptocurrency-trading ring. He is skilled in technology including trading of cryptocurrencies. Sohrab Hassan and Makhdum Nabin allegedly coordinated the trade.
Mahidul Islam, ADC at the Cyber and Special Crime unit of DB DMP, the official who supervising the case, told The Business Standard that as the Bangladesh Bank did not monitor or control trading of any kind of virtual coin or cryptocurrency in the country, there are a fear for people of being cheated and become financially loser.
"Besides, we started investigating different illegal transactions including money laundering, financing terrorism through cryptocurrencies such as bitcoin."
The DB cyber team took the three on a three-day remand for interrogation. People who are investigating the case, said after analysing their devices that were recovered during the drive, the DB team found information of transactions of two types of currency.
Primary investigation found that the group has transacted USDT111,769 and bitcoin worth $9,103 in the past three years' bank accounts that were used for cryptocurrency trade. Besides, their virtual wallet had a balance of bitcoin worth $800.
Moreover, DB police also found information on two bank accounts at Brac Bank and Dutch Bangla Bank. Through the accounts, the group has transacted Tk12.78 crore in the past three years.
However, during the interrogation, they could not tell the source of this money But the DB got a list of people who regularly transacted with them. It found information on a Pakistani national with whom they had a large number of transactions.
Information regarding cryptocurrency transactions remains secure through the blockchain network. Blockchain is a method that collects information together in groups, known as blocks.
Two internet users themselves, with disclosure of identity, can directly transact the virtual currencies. With opening a 27-34 digit internet account and ID, they can transact currency virtually.