400 Investors Lose ₹100 Cr in Crypto Scam Tied to Celebrity Hairstylist

Celebrity hairstylist Jawed Habib and his son Anas Habib face 23 first information reports (FIRs) under Indian Penal Code Sections 420 (cheating) and 506 (criminal intimidation) for allegedly orchestrating a ₹100 crore cryptocurrency fraud in western Uttar Pradesh. The scam, centered on Follicle Global Company (FLC), targeted over 400 investors who were promised 50–75% annual returns on Bitcoin and Binance Coin investments during a 2023 promotional event in Sambhal. Attendees were encouraged to invest ₹5–7 lakh via cryptocurrency exchanges or cash, with assurances of guaranteed monthly returns and repayment of principal within three months.

The scheme collapsed when FLC abruptly shut down its operations within a month, leaving investors unable to retrieve their funds. Police investigations revealed that funds were redirected to multiple accounts, with Saifullah Khan, the company's operations head, allegedly delaying payments and issuing threats to victims. Sambhal Superintendent of Police Krishan Kumar Bishnoi described the operation as a "multi-layered fraud scheme involving fund transfers to other companies," adding that Jawed Habib's wife was listed as the founder of FLC. Lookout notices have been issued to prevent the family from leaving the country, while their bank accounts and properties are under scrutiny.

Victims, including 22-year-old AC mechanic Mohd Hilal, reported significant personal losses. Hilal invested ₹4.59 lakh, with ₹1.5 lakh paid online and the remainder in cash, expecting a ₹35,000 monthly return. "That money was meant for my sister's wedding-now neither the money came back nor the wedding happened," he stated. Over 150 investors filed complaints at Raisatti Police Station, prompting the initial FIR and subsequent investigations that expanded to 23 cases.

Jawed Habib's legal team has denied direct involvement, asserting that his role at the Sambhal event was limited to being a chief guest for a hair and beauty seminar. Pawan Kumar, Habib's lawyer, emphasized that a public notice in January 2023 disassociated him from FLC and that no FIRs were registered under his name. However, police argue that his celebrity status was leveraged to gain public trust, turning the case into one of the most high-profile financial scams in the region.

Authorities are now tracing digital transactions and assets linked to the Habib family, including properties in Delhi and Mumbai, under Section 107 of the CrPC. If chargesheets are filed, action under the Gangster Act, including property seizure, may follow. The case underscores the risks of cryptocurrency-based schemes in India, where unrealistic returns often lure investors, particularly when endorsed by public figures.

Source: [1] The Crypto Times (https://www.cryptotimes.io/2025/10/09/jawed-habib-faces-23-fir-cases-for-%E2%82%B9100-cr-crypto-scam/)

[2] The Economic Times (https://economictimes.indiatimes.com/news/new-updates/jawed-habib-case-23-firs-400-victims-what-really-happened-in-the-crypto-scam-linked-to-the-celebrity-hairstylist/articleshow/124407758.cms)

[3] The Week.in (https://www.theweek.in/news/india/2025/10/08/what-is-the-case-against-jawed-habib-celebrity-hairstylist-booked-for-duping-people-of-crores.html)

[7] Panasiabiz.com (https://panasiabiz.com/112047/jawed-habib-booked-in-%E2%82%B9crore-crypto-scam-up-police-probe-follicile-global-fraud/)

[10] News18.com (https://www.news18.com/india/celebrity-hairstylist-jawed-habib-son-booked-in-20-cases-over-cryptocurrency-fraud-ws-kl-9619154.html)

[11] The420.in (https://the420.in/jawed-habib-son-crypto-fraud-20-cases-gangster-act/)