Crypto Scam Suspect Arrested in India After Rs 1.5 Crore Fraud

Indian police have apprehended a 26-year-old man from Ahmedabad, Harshik Mukeshbhai Patel, for his involvement in a cryptocurrency investment scam that defrauded traders of approximately Rs. 1.5 crore (around $180,000). The arrest took place in Chandkheda, Gandhinagar district, Gujarat, and Patel has since been transported to Kolkata for further legal proceedings. The case was registered on September 15, 2023, at the Bidhannagar Cyber Crime Police Station following a complaint from Aurobinda Maji, a 34-year-old resident of Kolkata.

Maji's complaint detailed how he was deceived by a fraudulent cryptocurrency investment platform that promised substantial returns. The platform provided users with a digital wallet to deposit funds, which were purportedly used to grow their investments rapidly. This tactic is common among scammers who lure unsuspecting investors with the promise of high returns to encourage investments on their fake platforms.

The scam, disguised as legitimate crypto trading, involved the use of multiple bank accounts to siphon funds from the platform. The fraudsters operated a sophisticated, professional-looking online platform that mimicked the interfaces of legitimate crypto wallets and trading websites. Traders were encouraged to invest in various digital assets, a strategy used by criminals to ensure that victims remain tied to the criminal group through multiple investments. The scammers even offered guaranteed profits ranging from 10% to 25% within days, further enticing victims to invest more.

Investigators traced a portion of the stolen funds, approximately Rs. 2 lakh (around $2,400), to an IDFC First Bank account held by Patel. The money was deposited through the Layer 2 stage and withdrawn via an ATM shortly after. During the arrest, police seized undisclosed items believed to be linked to the financial transactions. A senior officer from the Bidhannagar Commissionerate stated that Patel may be part of a larger network involved in similar digital investment scams, and the investigation is ongoing to identify additional beneficiaries and accomplices.

The recent increase in digital asset-related crimes in India highlights the growing sophistication of cyber fraud. Another recent scam involved a man losing approximately Rs. 1.67 crore (around $200,000) through WhatsApp. The victim was initially contacted by a scammer posing as a potential bride on a matrimonial website. The scammer claimed to work in a crypto trading firm based in Singapore and convinced the victim to invest, promising high returns. The victim initially sent about $583 and made a profit of $100 from a single trade, which encouraged further investments. The scammer continued to lure the victim with promises of higher returns, leading to multiple bank transfers and UPI payments.