India, March 21 -- Holding that the legality of cryptocurrency trading cannot be used as a shield for fraudulent conduct, a special court under the Maharashtra Protection of Interest of Depositors (MPID) Act has refused to discharge two brothers accused in an alleged Rs.84 crore investment scam linked to "ATC coins," ruling that there is sufficient material to proceed to trial.

Additional sessions judge N.G. Shukla rejected the discharge pleas of Subhashchand Ramratan Jewria and Chirag Ramratan Jewria, observing that while virtual currencies are not banned in India, the case concerns alleged cheating of investors rather than the legality of crypto transactions.

"The issue is not merely dealing in virtual currencies, but whether deposito...