Indian Authorities Arrest Five in ₹61.64 Million Crypto Fraud

In a significant move against cryptocurrency fraud, Indian authorities have apprehended five individuals for their involvement in a fake crypto trading scheme. The group, which included Sejal Ravikumar Sabhaya, his father Sabhaya Ravi Kumanbhai, his mother Sabhaya Kumanbhai, Paras Dhirubhai Jesani, and Dharmesh Nanubhai Savaliya, was found to be operating a fraudulent cryptocurrency exchange platform. This platform was used to deceive investors, posing as a legitimate entity to siphon funds from unsuspecting victims.

The scam involved a woman who initiated contact with the victim through social media, claiming to be a software developer based in China Hong Kong. She promised the victim attractive investment returns within a short period. The perpetrator added the victim to a fake group with actors posing as successful investors to lend credibility to her deceptive offer. The scammers then provided false investment instructions, urging the victim to invest his money. The businessman, believing the scheme to be genuine, transferred a total of ₹6,16,37,084 to the scammers' bank accounts over May and June 2024. The fraudsters continually delayed the victim's attempts to withdraw his supposed earnings, eventually disappearing after demanding an additional ₹89,00,000 as compensation.

Following the victim's complaint, the cybercrime division of Odisha’s state crime branch initiated an investigation. Led by Crime Branch DSP Ratnaprava Satpathy, the team tracked digital money transfers and banking documents, resulting in the arrest of the five suspects in Surat, Gujarat. This operation highlights the growing sophistication of internet fraud organizations, which now employ advanced methods to deceive victims. The case serves as a stark reminder of the risks associated with unregulated digital assets and the importance of vigilance in the digital finance landscape.

This incident is not an isolated occurrence. In February, authorities seized cryptocurrency worth $190 million during an investigation into the BitConnect scam. The Gujarat police also confiscated a total of 13,50,500 rupees and a luxury SUV during their search actions. These seizures underscore the increasing vigilance of law enforcement agencies in combating financial crimes, particularly those involving cryptocurrencies. The use of fake exchanges and impersonation tactics to defraud investors is a growing concern, and this case serves as a stark reminder of the risks associated with unregulated digital assets.

In response to the rising number of cryptocurrency frauds, authorities have urged investors to carefully verify the legal status of a platform before making any investments. They advise people to authorize transactions through certified government sites and reject fraudulent ads that promise extraordinary investment outcomes. This situation illustrates that internet fraud organizations now use advanced methods. People need to monitor the news and stay alert to detect threats. Investors can shield themselves from scams by checking investments before they commit and alerting authorities about abnormal behavior.