Indian Authorities Bust Multi-State Crypto Scam Operating For 10 Years
In a major crackdown, Indian authorities have unveiled a decade-long cryptocurrency investment scam that manipulated unsuspecting investors both domestically and internationally. This operation involved fake crypto platforms, referral schemes, and extensive misuse of social media to create a highly lucrative yet deceitful venture.
A Coordinated Effort: Raids Across Multiple States
India’s Enforcement Directorate (ED) executed synchronized raids across 21 locations in Karnataka, Maharashtra, and Delhi under the Prevention of Money Laundering Act (PMLA). The searches revealed fraudulent activities linked to 4th Bloc Consultants and associated entities that orchestrated fake crypto trading platforms to lure investors with seemingly high returns on investments.
Investigators discovered that professional-looking websites mimicked legitimate global cryptocurrency exchanges, complete with dashboards, transaction histories, and portfolio balances. However, these platforms were fronts, conducting little to no substantial trading activity, instead functioning as Ponzi or multi-level-marketing schemes.
The Social Media & Referral Trap
In order to build trust, the scammers allegedly used fabricated endorsements by recognizable industry figures and paid small initial returns to early investors. Victims were then prompted to deposit larger sums and recruit others through referral bonuses. The syndicate relied heavily on platforms like Facebook, Instagram, WhatsApp, and Telegram for advertising, targeting both Indian and overseas investors.
Tracing the Money: Crypto Wallets, Foreign Accounts, and Assets
The ED’s investigation has exposed an intricate web of financial laundering. Funds were reportedly routed through undeclared crypto wallets, foreign bank accounts, shell companies, and hawala networks. Additionally, the scammers utilized peer-to-peer crypto transfers to obscure the money trail before converting funds into cash or parking them in international accounts.
During the raids, movable and immovable assets in India and abroad were identified, along with multiple cryptocurrency wallet addresses managed by the perpetrators. The ED suspects these schemes date back to at least 2015 and were modified over time to elude increasing market scrutiny.
Protect Yourself From Fraudulent Crypto Scams
As the global popularity of cryptocurrencies grows, so do the risks of falling for scams. To safeguard your investments, always ensure you’re using verified platforms for trading and exchanges. Products like the Ledger Nano X, a hardware wallet known for its strong security features, can help protect your digital assets.
Meanwhile, Indian authorities continue their investigation into this elaborate scam, further solidifying the need for regulation and security measures within the cryptocurrency space.
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