Binance and Ahmedabad Police dismantle $200,000 cross-border crypto scam

Binance, in collaboration with the Ahmedabad Cyber Crime Branch, recently dismantled a significant cross-border cryptocurrency scam network. The scam, which targeted victims across South and Southeast Asia, amounted to over $200,000 (₹1.75 crore). This fraud is part of a growing trend known as “digital arrest” scams, where fraudsters use fake legal threats to extort money from their victims.

One notable case involved a 90-year-old man from Gujarat who lost ₹1.25 crore after being falsely informed that he was in legal trouble. In another instance, a young jobseeker was lured to Nepal with a fake job offer, only to be held captive and forced to transfer ₹49 lakh through cryptocurrency wallets. These cases highlight the sophistication and ruthlessness of the scammers involved.

Despite the increasing cunning of the scammers, the tools to combat them are also advancing. The criminals attempted to launder the stolen funds through cryptocurrency, but the blockchain technology left a traceable trail. Binance, with its Financial Intelligence Unit, played a crucial role in supporting the Ahmedabad Police by tracing the money and identifying those involved. The blockchain tracking allowed investigators to monitor wallet activity, detect suspicious transactions, and ultimately make arrests.

A senior officer from the Ahmedabad Cyber Crime Branch emphasized the importance of global cooperation in tackling such advanced cyber scams. The case also involved the arrest of a man in Ahmedabad who facilitated a ₹22 lakh digital arrest scam by “renting out” his bank account to move stolen funds, making it more difficult to trace the money. This tactic of renting bank accounts is common in such scams and helps criminals evade detection. The fast-paced nature of these frauds, which often cross borders and move money quickly, necessitates swift action and strong coordination between law enforcement and cryptocurrency platforms.

In digital arrest scams, fraudsters often impersonate police or government officials to intimidate victims into sending money. The funds are frequently moved through cryptocurrency wallets or fake bank accounts to obscure their origin. This trend underscores the need for vigilance in an increasingly interconnected world.

A regional lead at Binance South Asia noted that every cryptocurrency transaction leaves a trace, and this case demonstrates how blockchain technology, when used correctly, can aid in fighting crime. The investigation is ongoing, and more arrests are anticipated as authorities continue to unravel the global scam network.

Binance’s Financial Intelligence Unit works closely with law enforcement by analyzing suspicious transactions and providing timely, actionable insights. In 2024 alone, Binance responded to over 65,000 law enforcement requests worldwide, showcasing its commitment to combating financial crimes. This collaboration between Binance and law enforcement agencies serves as a model for how cryptocurrency platforms can contribute to the fight against cybercrime, ensuring a safer digital environment for all users.