Indian Authorities Crack Down on Major Crypto Scam
In recent news, India’s Enforcement Directorate (ED) has uncovered and cracked down on a massive cryptocurrency scam in Maharashtra. The fraudulent operation, which caused investor losses of over Rs. 4.25 crore (approximately $472,000), involved a group led by Nished Mahadeo Rao Wasnik and associates. Here’s everything you need to know about this shocking case and its implications for crypto investments.
The Unveiling of the Alleged Crypto Scam
The ED conducted search operations at three locations in Nagpur on January 7, 2026, under the Prevention of Money Laundering Act (PMLA), 2002. These locations were linked to Wasnik’s unauthorized online platform, “Ether Trade Asia.” According to reports, the group organized promotional events in premium hotels throughout Maharashtra, enticing attendees with promises of high returns from investments in Ethereum-based schemes.
Authorities revealed that the platform was a façade created to defraud investors using a fabricated binary commission scheme. Innocent investors were lured with promises of exorbitant returns, only to have their funds misappropriated for the accused’s personal gain.
Assets Seized and Fraudulent Operations Exposed
The investigation found that the accused used the collected funds to acquire both movable and immovable properties, some of which were registered under the names of family members or held as benami properties. ED confirmed the seizure of cryptocurrencies worth Rs. 4.79 crore ($530,000) in personal wallets linked to the accused, along with cash and digital devices. Bank accounts containing over Rs. 20 lakh ($22,000) were also frozen during the search operations.
The term “benami,” meaning “without a name” in Hindi, refers to properties hidden under false ownership to obscure the real owner’s identity. Allegations suggest that vast amounts of money were laundered using such properties.
Broader Implications for Crypto in India
India has recently increased its scrutiny of crypto-related scams, taking strict action against fraudulent activities in the sector. In December 2025, a $254 million Ponzi and multi-level marketing (MLM) scam was dismantled, impacting hundreds of thousands of investors. The scams have highlighted the importance of vigilance in the rapidly growing yet often misunderstood crypto market.
Are you a crypto investor? Protect yourself by conducting thorough research before investing in any platform. Also, tools like Ledger Wallet or Trezor Hardware Wallet can offer secure ways to store your crypto investments safely. Check them out online to safeguard your digital assets.
Final Thoughts
The fight against crypto fraud continues as authorities crack down on operations exploiting investor trust. This particular case emphasizes the need for transparency, accurate knowledge, and precautions in any financial venture. Always remember: if something sounds too good to be true, it probably is.
