Indian law enforcement agencies are reportedly on the trail of those suspected of defrauding Indian residents of nearly $11 million.

The suspects allegedly defrauded investors by falsely claiming that their yet-to-be-launched virtual currency offered a 200% return on investment. Authorities said the crooks used several tactics to win the trust of their victims, including promises of luxury vacations in Dubai.

The investigation also revealed that the fraudsters told investors that they were building an office building in Dubai, and when some investors tried to verify this claim, the fraudsters showed them the building under construction. Another deception was to falsely claim that they were running a financial organization in Maharashtra.

The crooks also held several events to educate investors about the fundamentals of blockchain technology and the future of the new asset class.

The fraudsters set up a fake website that falsely claimed to show the value of investments and offer victims the opportunity to convert their holdings into bitcoin or cash out. Multiple reports from victims said that all attempts to withdraw funds had failed, confirming their fears that the investment scheme was fraudulent.

Investigators say the organisers of the scam have fled India, but police have begun a massive hunt. India's law enforcement agency said it would work with Interpol and other regional security agencies to bring the culprits to justice.