Indian Police Arrest Crypto Scam Suspect for $180K Fraud
Authorities in Kolkata have arrested a 26-year-old man, Harshik Mukeshbhai Patel, for allegedly orchestrating a cryptocurrency investment scam that defrauded victims of approximately $180,000 (Rs. 1.5 crore). The arrest, carried out in Chandkheda, Gandhinagar district, Gujarat, follows an extensive investigation led by the Bidhannagar Cyber Crime Police.
Patel has been transported to Kolkata on a court order and will remain in custody pending further legal proceedings. The case stems from a complaint filed in September 2023 by Aurobinda Maji, a 34-year-old resident of Kolkata, who claimed he was tricked into investing in a fraudulent crypto platform.
Fake Investment Platform Promised Massive Returns
According to police reports, Maji was lured into the scheme through a deceptive online crypto investment portal that offered unrealistic returns between 10% and 25% within days. The platform, which mimicked the design of legitimate crypto wallets and trading websites, allowed users to create accounts and deposit money into what appeared to be secure wallets.
This scam mirrors a common trend among crypto frauds, where scammers simulate profitability to build trust before disappearing with user funds. Victims typically observe an initial profit to encourage further investment, only for the site to vanish or become unresponsive once substantial deposits are made.
Multiple Bank Accounts Used in the Scam
The investigation revealed that the fraudsters operated through a network of bank accounts to divert and obscure the movement of stolen funds. Patel was directly linked to an IDFC First Bank account that received Rs. 2 lakh ($2,400) of the defrauded money. Police said the amount was withdrawn via ATM shortly after being deposited.
During the arrest, several undisclosed items suspected to be connected to the financial transactions were seized. A senior officer from the Bidhannagar Commissionerate stated that Patel might be part of a larger syndicate engaged in similar digital asset scams. Authorities are now expanding the investigation to trace potential accomplices and additional victims.
Surge in Crypto Fraud Across India
India is currently witnessing a sharp rise in digital asset-related crimes. In a separate case, a man lost Rs. 1.67 crore ($200,000) to a scammer he met on a matrimonial website. The scammer, posing as a crypto trading expert from Singapore, lured the victim through WhatsApp with small initial gains before convincing him to invest heavily.
The victim reported seeing a profit of Rs. 8,300 after his first $583 investment. Encouraged by this result, he continued to send more funds through bank transfers and UPI payments, only to discover it was a fraud.
Crypto Scams Becoming More Sophisticated
Indian scammers are increasingly adopting advanced techniques to dupe victims, including impersonating celebrities and using fake trading apps. These tactics not only deceive first-time investors but also seasoned traders seeking quick returns in the booming crypto market.
One recent example involves a victim who lost $10,000 after being convinced he was investing with “Elon Musk” via a fake social media account. In another high-profile case, a North Korean-linked agent reportedly infiltrated an Indian crypto startup and stole hundreds of thousands of dollars.
Regulatory Authorities Urged to Act
The growing wave of crypto fraud in India has prompted calls for stronger regulation and public awareness. Experts stress that investors should be wary of platforms promising guaranteed profits and should verify all claims before transferring funds. Red flags include:
- Unrealistic return promises (10%+ in days)
- Pressure to act quickly or miss out
- Lack of proper company registration or licenses
- Inability to contact support or withdraw funds
Cybercrime units across India are stepping up their efforts to track and arrest suspects involved in crypto scams. Still, the borderless nature of digital assets makes enforcement challenging without broader collaboration between states and global authorities.
Stay Alert in India’s Evolving Crypto Market
As India’s crypto market continues to grow, so does the sophistication of fraud targeting unsuspecting investors. The arrest of Harshik Patel marks another step forward in the country’s efforts to tackle digital asset crime, but it also highlights the ongoing risks in a largely unregulated sector.
Investors should remain cautious, perform due diligence, and report suspicious activity immediately. Until comprehensive consumer protections are in place, crypto users in India must balance opportunity with caution to avoid falling prey to scams.
