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Massive Cryptocurrency Scam Uncovered in India, Over 1,400 Investors Defrauded

A major cryptocurrency scam in India has led to the arrest of a man accused of defrauding 1,441 investors. The scam, involving fake crypto schemes, has raised concerns about the safety of digital investments in the country.
Published on 2022-09-07

Massive Cryptocurrency Scam in India

A man identified as Ritesh Panchal, also known as Ritesh Sikalgir, has been arrested in Thane, Maharashtra, for operating a fake cryptocurrency scam. The scam, which involved two fraudulent schemes named "Magic 3x" and "SMP," defrauded 1,441 investors of over 250 billion INR (approximately $31 million USD). So far, 24 victims have come forward, reporting losses totaling 44 million INR.

Panchal lured investors by promising unusually high returns, nearly doubling their investments within 10 to 20 months. The Economic Offence Wing (EOW) of the Thane police launched an investigation after discovering that Panchal operated four bank accounts in Mumbai-based banks.

Rising Concerns Over Cryptocurrency Safety

The incident highlights growing concerns about cryptocurrency scams in India. A recent survey by KuCoin revealed that 115 million Indians, or about 11% of the population, have invested in cryptocurrencies, placing India 7th globally in terms of crypto adoption. However, 26% of Indian investors worry about hacks and exploits, while 23% fear losing funds due to security breaches.

Chainalysis, a crypto investigation tool, identified popular scam websites in India, including coinpayu.com, adbtc.top, and dualmine.com, which have collectively received 4.6 million visits.

Regulatory Crackdown on Cryptocurrency Fraud

The Indian government has intensified its efforts to combat cryptocurrency fraud. The Directorate of Enforcement (ED) recently launched an investigation into Binance-acquired WazirX for alleged money laundering worth $350 million USD. Additionally, at least 10 cryptocurrency exchanges are under investigation for laundering over 10 billion INR ($125 million USD).

Indian Finance Minister Nirmala Sitharaman has urged caution for those dealing with cryptocurrencies, emphasizing the need for vigilance in the face of rising scams.

Why This Matters

The increasing prevalence of cryptocurrency scams in India has left investors wary of new opportunities. As the government tightens regulations and investigations continue, the focus remains on ensuring the safety and security of digital investments.

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