Delhi HC directs Whatsapp and Telegram to suspend accounts faking venture capital firms Peak XV & Sequoia Capital

Peak XV was formerly known as Sequoia Capital India before it split from the US parent—Sequoia Capital—to operate independently. The Bengaluru-based venture capital firm manages over $9.2 billion across 13 funds with investments in over 400 startups, including unicorns such as BYJU's, BharatPe, Apna, Cars24, CRED, Mamaearth, MPL, Ola, Oyo and Pine Labs, among others.

Peak XV was alerted to the scam in December 2023, when it discovered a 'Pak XV' application that blatantly attempted to pass off Peak XV's brand and trademarks, including reproducing content from the official website to operate the fake website and application that offered dubious investment schemes. Furthermore, the perpetrators have impersonated employees of the firm to conduct webinars on stock trading tips with the intent to dupe the public.

In September 2023, Sequoia Capital was informed of a WhatsApp group named “John Analyst Group-303” managed by persons who identified themselves as Sequoia Capital Investors Advisors and Sequoia Capital BTC Trading Team, purportedly a part of the Sequoia Capital Group.

The lawsuits came up for hearing on Jan 24, where the Delhi High Court took note of the scams and passed the orders, stating that the perpetrators are taking aid of Peak XV and Sequoia Capital’s standing in the market to induce unwary consumers into investing substantial amounts, and passing off the venture capital firms’ respective trademarks and/or claiming an association with its personnel.

The court has directed the platforms to suspend and block access to the relevant accounts, and provide the requisite details of such persons to aid investigation by the authorities.

Additionally, the court directed authorities to issue appropriate directions to curb these identified scams.