Central Bank of Sri Lanka Prepares to File Lawsuit Against Suspected $47 Million Encryption Scam Organizers

According to reports, the Central Bank of Sri Lanka is preparing to file a lawsuit against a group of individuals suspected of organizing a $47 million encryption scam. According to the local financial crime Investigation Bureau (FCID), the so-called Ponzi scheme was created by nine people. They promoted an encryption project called Sports Chain and a related coin that had never actually existed. The Sri Lankan authorities have noticed suspicious activities after last year’s investigation by Al Jazeera Television. FCID has filed a lawsuit in court. The lawsuit claims that they defrauded about 15 billion rupees (approximately $46.6 million) from over 8000 Sri Lankans. Some suspects were detained in 2022 but were released on bail in December. FCID claims that the fraudster is suspected of investing some of the funds received from the victims in expensive cars and luxury apartments in Colombo, Sri Lanka.  

Sri Lankan authorities have discovered fraudulent encryption schemes worth $47 million

As reported by various news sources, the Central Bank of Sri Lanka is set to file a lawsuit against a group of individuals suspected of orchestrating a $47 million encryption scam. The cyber fraud investigation comes in the wake of an earlier inquiry by Al Jazeera Television that led to the culprits’ arrests last year.

The Sports Chain Ponzi Scheme

According to the local Financial Crime Investigation Bureau (FCID), nine individuals are alleged to have promoted an encryption project called Sports Chain and a related coin that was non-existent. The alleged scheme successfully lured over 8,000 Sri Lankans into investing into their fraudulent scheme.

The Investigation

The investigation into the alleged scam has revealed suspicious activities, and the FCID has filed charges in court. These charges claim that the nine individuals accused of the scam defrauded about 15 billion rupees from their victims, equivalent to approximately $46.6 million.

The Suspects

Some suspects were detained in 2022 but were later released on bail in December, while the investigation remains ongoing. The authorities’ investigation claims that the fraudsters diverted some of the funds stolen from their victims to acquire expensive cars and luxury apartments in Colombo, Sri Lanka.

The Central Bank’s Response

The Central Bank of Sri Lanka has taken a critical stance against financial crimes and will pursue criminal charges against guilty parties. These actions are part of their effort to protect both the country’s financial markets and the public’s interests.

Conclusion

The alleged $47 million encryption scam orchestrated by nine individuals, who tricked over 8,000 Sri Lankans into investing in a nonexistent encryption project, has brought significant consequences. Sri Lanka’s government, through the FCID, has filed a lawsuit, asserting that the scammers’ fraudulent activity has caused financial harm to their victims.

FAQs

Q: What was the fraudulent scheme’s name that the suspects used to scam Sri Lankans?

The suspects used the name Sports Chain as a ploy to trick Sri Lankans into investing over their funds.

Q: How much money was allegedly stolen in the encryption scam?

The Sri Lankan authorities claim that over 15 billion rupees (approximately $46.6 million) were defrauded from over 8,000 Sri Lankans.

Q: What is the Central Bank of Sri Lanka’s response to the fraudulent activity?

The Central Bank of Sri Lanka is taking a tough stance against financial crimes and will pursue legal action against anyone found guilty of illicit activities.