Rs 7 Crore Vanished in Crypto Scam
In yet another reminder of the dark side of cryptocurrency’s rise in India, police have uncovered a Rs 7 crore crypto scam that targeted businessmen through social media trading schemes. Two suspects have been arrested, one from Punjab and another from Andhra Pradesh, following a joint operation by cybercrime units.
The incident underscores the growing threat of crypto fraud in India, where rising adoption has been paralleled by a surge in scams exploiting digital asset hype.
How the Scam Worked
According to investigators, the accused posed as crypto investment advisers on platforms like WhatsApp and Telegram. They lured businessmen by promising quick returns through fake trading dashboards. Victims were shown manipulated screenshots of profits and encouraged to deposit more funds.
Once the amounts were transferred, the scammers cut off communication, leaving the victims unable to retrieve either their principal or alleged profits. Police sources confirmed the total value of the fraud at approximately Rs 7 crore, impacting multiple businessmen across states.
The Arrests
The arrested individuals have been identified as:
- Bittu Kumar, apprehended in Punjab.
- An associate from Andhra Pradesh, whose identity has been withheld pending further investigation.
Authorities reported seizing digital devices, fake trading app code, and records of crypto wallet transfers. The funds were quickly routed through multiple wallets to obscure their trail—a common tactic in crypto laundering.
Rise of Crypto Frauds in India
This case is only the latest in a string of crypto scams across India in 2025. From Ponzi schemes to fake mining operations, fraudsters are exploiting the lack of awareness and regulation.
According to data shared by cybercrime units, complaints related to crypto fraud have surged by over 200% this year. Social media remains the preferred hunting ground for scammers, who prey on individuals’ lack of technical expertise.
Victims’ Plight
Several victims shared their frustration with local media. One businessman explained:
“The scammers showed us huge profits on their dashboard. When we tried to withdraw, they kept demanding more fees. We realized too late that it was all fake.”
Such stories highlight the psychological manipulation employed in these schemes—greed and trust become the bait.
Expert Warnings
Cybersecurity experts warn that India is becoming a prime target for crypto scams.
Rohan Malhotra, a Delhi-based blockchain security analyst, noted:
“The Indian crypto scam problem is growing because of low digital literacy and high interest in quick returns. Without stricter KYC and investor education, these frauds will continue.”
Regulatory Response
While India has introduced taxation and reporting rules for cryptocurrency, enforcement against fraud remains a challenge. The Reserve Bank of India (RBI) has repeatedly warned citizens about unregulated platforms.
This case may increase pressure on policymakers to introduce tighter controls, particularly around crypto trading apps advertised on social media.
Impact on India’s Crypto Adoption
Scams like this risk undermining public trust in crypto at a time when India is emerging as a hub for blockchain innovation. Businesses and investors alike may hesitate to engage, slowing adoption and discouraging legitimate startups.
However, many analysts argue that frauds don’t reflect the technology itself, but rather the need for better education, awareness campaigns, and consumer safeguards.
What Happens Next
The accused face charges under India’s cybercrime laws and sections of the IT Act. If convicted, they could face years of imprisonment and heavy fines. Police are also working with crypto exchanges to trace the stolen funds, though recovery remains uncertain given the speed of laundering.
The arrests send a strong message, but experts caution that preventive measures—like awareness drives and stricter platform monitoring—are essential to stop scams before they happen.
