Police officers arrived at Old Broad Street in London and arrested a man, who allegedly was selling fake crypto-currency to investors, Business Insider reported.
According to the statement of City of London Police, the arrest was made on suspicion of conspiracy to defraud and money laundering.
"The man is thought to be part of a group which allegedly set-up a ‘boiler room’ which has allegedly been used to persuade people to invest in a cryptocurrency. Victims were cold called by salespeople who persuaded them to invest in a crypto-currency which does not exist and is therefore worthless,” police spokesperson explained.
Crypto-currencies have become extremely popular in 2017, so many startups started to issue their own digital currencies. According to Goldman Sachs (NYSE: GS) there are over 800 "altcoins" in circulation online.
The total value of all cryptocurrencies has surpassed $126 billion on Friday. Only four days after the previous record of $116 billion was registered. Goldman Sachs Group Inc. admitted that institutional investors can no longer turn a blind eye to this market.