India Seizes $5M in Coinbase Clone Scam Assets Following U.S. Action

India has launched a major enforcement action against a fraudulent cryptocurrency platform that mirrored the legitimate Coinbase exchange, seizing assets worth $5 million linked to the scam. This follows the U.S. authorities’ earlier dismantling of the same fraudulent operation in early 2025, marking a significant escalation in the international response to digital financial fraud. The Indian government issued the asset attachment order on July 18, 2025, demonstrating a broader commitment to holding cybercriminals accountable for their actions [1].

The counterfeit platform, which was reportedly taken offline on May 12, 2025, operated with a design and functionality nearly identical to Coinbase, deceiving users into transferring large amounts of cryptocurrency. The scam reportedly defrauded victims of over $20 million, leveraging the trust associated with well-known platforms to exploit unsuspecting investors. The sophistication of the operation highlights the growing threat posed by clone sites in the digital asset space [2].

The U.S. had already disrupted the scam’s operations earlier in the year by apprehending a key suspect, but India’s recent actions show that the legal process is ongoing, with authorities now focusing on financial recovery and victim compensation. The simultaneous involvement of two major jurisdictions in the same case signals a shift toward more coordinated international enforcement against cybercrime in the crypto sector [1].

The incident also raises important regulatory concerns, particularly in India, where the asset attachment order reflects a proactive approach to tracing and seizing digital assets associated with fraudulent schemes. This approach may set a precedent for future enforcement actions, even in cases where perpetrators operate outside the country. The move underscores the increasing capability of authorities to track and respond to digital fraud across borders [1].

As cryptocurrencies gain wider adoption, cases like this highlight the need for heightened investor awareness and stronger global cooperation to combat evolving cyber threats. The combined efforts of U.S. and Indian authorities suggest a growing trend toward multilateral enforcement strategies, which could become essential in addressing the cross-border nature of digital financial crime.

Source:

[1] India Strikes After US Takes Down Suspect in Coinbase Clone Scam – https://news.bitcoin.com/india-strikes-after-us-takes-down-suspect-in-coinbase-clone-scam/

[2] Today's Top Cryptocrime News Stories – https://cybersecurityventures.com/cryptocrime/