Crypto's Anonymity Fuels Multi-Crore Scams, India Tightens Oversight

The Enforcement Directorate (ED) has intensified its crackdown on cryptocurrency-linked fraud, unearthing a multi-crore scam network that leveraged digital assets to launder proceeds from global tech support scams. In a coordinated operation, the ED conducted searches at 15 locations across Delhi, Noida, Gurugram, Haryana, and Mumbai, targeting a fraud syndicate that defrauded foreign nationals in the U.S. and Europe. The suspects, operating under false pretenses of tech support services from companies like Microsoft and Apple, extracted payments by falsely claiming victims' accounts were compromised. Proceeds were converted into cryptocurrencies and gift cards, with transactions tracing to millions of U.S. dollars in illicit funds. Digital evidence suggests a transnational operation, with crypto wallets and cross-border transfers central to the money trailRaids In Multi-Crore Tech Support Scam, Crypto Trail Worth …^[1].

The Central Bureau of Investigation (CBI) separately exposed a Rs 350 crore Ponzi scheme, where fraudsters promised exorbitant returns on cryptocurrency investments through social media groups. The operation, spanning seven Indian states, involved converting scam proceeds into crypto to obscure their origins. Investigators identified over USD 38,414 in digital assets and Rs 34.2 lakh in cash seized during raids. The CBI highlighted the use of Telegram and WhatsApp groups to propagate the scheme, with victims lured by unrealistic 25-30% annual returnsCBI busts 350cr crypto scam, raids 10 locations in …^[3].

In another case, the ED uncovered a Rs 600 crore scam linked to spoofed websites mimicking Coinbase, orchestrated by an Indian national imprisoned in the U.S. for defrauding USD 20 million. Fraudsters manipulated search engine results to direct victims to fake customer support lines, enabling the theft of cryptocurrency assets. Stolen funds were liquidated via localbitcoins.com and converted into Indian rupees, with Rs 15 crore traced to the scammer's family accounts. The agency froze these accounts and seized Rs 2.18 crore so farED cracks down on ₹600 crore cryptocurrency fraud …^[4].

A parallel Rs 260 crore scam, also investigated by the ED, involved fake tech support calls targeting both Indian and international victims. Scammers posed as law enforcement officers to pressure victims into paying "rescue fees," with funds swiftly converted into crypto and dispersed across digital wallets. Raids at 11 locations across Delhi, Noida, and Dehradun yielded electronic devices and crypto wallet credentials, underscoring the complexity of the money laundering networkCrypto Scam Crackdown: What You Need to Know - thefinrate.com^[5].

These cases highlight a growing trend of cybercriminals exploiting cryptocurrencies for fraud and money laundering. The anonymity and cross-border nature of digital assets have enabled sophisticated schemes, with India's enforcement agencies increasingly focusing on tracking crypto transactions under frameworks like the Prevention of Money Laundering Act (PMLA). As regulators worldwide grapple with crypto's dual role as both an innovation and a risk, India's multi-pronged approach-combining forensic audits, international collaboration, and legal action-signals a shift toward stricter oversight in the digital asset spaceRaids In Multi-Crore Tech Support Scam, Crypto Trail Worth …^[1]Crypto Scam Crackdown: What You Need to Know - thefinrate.com^[5].