Indian law enforcement has arrested five individuals, including one woman, for allegedly running a fraudulent cryptocurrency scheme that tricked a businessman into losing nearly $700,000. The cybercrime unit of Odisha’s Crime Branch led the investigation, uncovering a sophisticated scam disguised as a legitimate trading platform.
How the Scam Worked
The accused lured their victim through social media, with a woman posing as a Hong Kong-based IBM software developer. She gained his trust and convinced him to invest in a crypto platform called ZAIF, which claimed to be based in Japan.
It’s important to note that ZAIF is the name of a real Japanese cryptocurrency exchange, but the scam had no actual connection to the legitimate platform. The fraudsters likely used the name to appear credible.
Over time, the businessman invested more than INR 6 crore (approximately $699,352) across multiple accounts controlled by the scammers. Initially, he was shown fake profits on the platform, a classic trick used in online trading scams to build confidence.
However, when he tried to withdraw his profits, the platform suddenly demanded an additional INR 89 lakh (about $107,000) to unlock the funds—a well-known advance fee scam tactic. When he refused, the scammers vanished, cutting off all communication.
Police Crack Down
Authorities tracked down the suspects through digital footprints, banking records, and transaction logs. During the raid, police confiscated:
- Mobile phones and SIM cards used in the operation
- Fake ID documents linked to various accounts
- Transaction records revealing the money trail
The case highlights the rising threat of crypto-related fraud in India. With the industry still in a regulatory grey zone, scams like these have become increasingly common.
India’s Growing Crypto Scam Problem
This is not an isolated incident. Earlier this month, police busted another multi-million-dollar crypto fraud involving a fake token called RSN, which promised 2% daily returns. Investors reportedly lost between $1.14 million and $2.29 million in that scheme.
As authorities step up enforcement, investors are urged to remain vigilant and avoid platforms making unrealistic promises of high returns. The golden rule: If it sounds too good to be true, it probably is.
