Indian police are hunting down a suspected crypto scammer who went on the run earlier this week, just months after being arrested for fraud in connection with BitConnect.

Divyesh Darji, who was released on bail last month following his August arrest for involvement in the BitConnect ‘Ponzi’ scheme, failed to report to his local police station in Adajan, Surat, on Monday.

Gujarat police have now issued a further warrant for the businessman’s arrest as it emerges detectives want to speak with him about a second alleged scam.

Darji is now wanted in connection with a cryptocurrency called Regal Coin, which launched in 2017.

It is understood he was urging investors to plough cash into Regal Coin with promises of turning $2 into $100 in a matter of weeks.

Mr Darji had been in custody following BitConnect’s spectacular collapse earlier this year after authorities were forced to shut its exchange down while investigating fraudulent activity.

He is believed to have netted millions from investors as head of BitConnect in India before the crypto’s value collapsed to below $1.

A surge in price above $80 for Regal Coin 18 months ago will have made a similar fortune before it too crashed in value to less than a cent.

In light of Mr Darji’s disappearance, detectives from India’s Criminal Investigation Department revealed that a number of alleged victims of a potential Regal Coin scam had come forward.

So far, it is understood those investors have lost around $650,000, with more claims yet to come forward.

Mr Darji had only been walking free for two weeks after being released on bail following charges of violating the Gujarat Protection of Investors Deposit Act and The Prize Chit Money Circulation Scheme Banning Act.