The Delhi high court has ordered messaging platforms WhatsApp and Telegram to suspend accounts misusing the names of Peak XV and Sequoia Capital to engage in fraudulent activities. The court also asked the platforms to provide necessary details of the involved parties to help authorities in the ongoing investigations.
The court order came after Peak XV and Sequoia Capital filed separate lawsuits before the high court after a series of online financial scams came to light. A series of online financial scams were reported where scammers used the names of the venture capital firms to execute frauds amounting to several lakhs and crores, deceiving the public.
The court also directed the electronics and information technology ministry and the telecom department to ensure all telecom and internet service providers permanently block/remove access to all the telephone numbers, websites and domain names that are engaging in the misusing of trademarks of the venture capital firms.
Sequoia is a venture capital firm headquartered in California. Peak XV, formerly Sequoia Capital India and SEA, is now an independent venture capital firm investing across India and Southeast Asia.
In June 2023, Sequoia Capital split into three, with the Indian and Southeast Asia arm assuming the identity of Peak XV Ventures.
The scammers offered trading and investment-related advice in the name of the two venture capital firms.
