VueNow Infotech has inaugurated two Edge data centers in Uttar Pradesh, India, while in the midst of a money laundering investigation. The data centers are located in Malihabad and Ambedkarnagar, and are part of a wider plan to deploy as many as 750 Edge data centers across the state.
The company has Edge data centers already operational in Ghaziabad and Raebareli, and plans to launch others in Varanasi, Prayagraj, Ayodhya, and Gorakhpur. An exact timeline for those additional locations has not been shared, but the company has completed the land
VueNow is currently in hot water and is facing a money laundering investigation in connection with the "cloud particle scam."
According to a report from The Hindu, a preliminary investigation by the Enforcement Directorate - the Indian organization responsible for investigating money laundering and financial crimes - has found that more than 25,000 investors have bought "cloud particles" (selling servers to people and leasing them back with the assurance of rental income to investors) and has received around Rs 2,200 crore ($258.7m) in lieu of the sales.
“Fraudsters dupe the investors over a longer period of time and the scam is hard to detect as the victims continue to benefit from high periodic returns on their investments in the cloud particles, unaware of the fact that there is no such digital infrastructure in existence,” an official said.
