Law Enforcement in India Cracks Down on Crypto Fraud

Law enforcement in India has arrested three individuals in connection with a large-scale crypto fraud that deceived over 2,000 victims with promises of lucrative returns.

According to local media, police in the northeastern Indian state of Assam have shut down the RSN Crypto scam, a sophisticated scheme that misled investors with false profit guarantees and a fraudulent online platform.

At its peak, the operation allegedly swindled over 2,000 victims, accumulating between INR 10-20 crore (approximately $1.14-2.29 million).

Scammers promoted the RSN crypto token as a promising investment that guaranteed a 2% daily return. However, investigations revealed that the investments were quickly converted into Tether-issued stablecoin USDT using exchanges like Binance.

The Indian Cyber Crime Coordination Centre (I4C) was involved in tracking the operation. Investigators discovered that the website was hosted on an Amazon server and had alleged connections to entities in China.

Police arrested three suspects who confessed to manipulating crypto values and pressuring victims to invest. Another key suspect, believed to be the head of the operation, remains at large.

Related Incidents

Chinese scammers have increasingly targeted Indian investors via fraudulent crypto projects, capitalizing on the surging interest in digital assets. Many of these scams follow common patterns.

Earlier this year, authorities dismantled the Datameer crypto trading app scam, swindling at least 700 investors out of INR 10 million (around $114,000). In a separate case, the Enforcement Directorate charged 299 Chinese entities a year prior for operating the HPZ Token fraud, a crypto mining scam.

Illicit crypto activity in India has surged in tandem with the country’s growing interest in digital assets.

With crypto trading volumes climbing to nearly $2 billion in late 2024, many investors from smaller cities are reportedly turning to crypto in hopes of finding new income streams. Experts project that the crypto market in India could expand beyond $15 billion by 2035.

Conclusion

India is also working with tech giants like Google and Facebook to combat crypto scams, including those involving pig butchering tactics.