Crypto Scam: Group Conducting Fake Crypto Transactions Busted in India’s Odisha

Crypto scams have been on a steady rise in India.  In one such incident, police in the Indian state of Odisha busted a gang of people who were involved in fake cryptocurrency transactions, according to local media reports. The scam has occurred at a time when the Indian government is trying to intensify scrutiny over the sector.

Gang involved in crypto scam busted in Odisha

According to local media reports, the city of Bolangir in Odisha, India saw a new type of crypto scam. The police in the area made a breakthrough on Saturday when they apprehended the main suspect of a local gang. The group members of the gang allegedly participated in fake cryptocurrency transactions.

The gang members used fake cryptocurrency transactions and lured people with tours of Thailand and Dubai. They were using a variety of websites and apps to scam individuals.

Through fake cryptocurrencies, the gang had obtained over $1.5 million from various investors. To conceal their transactions, they also established a multi-level marketing organization called “Pegmatite Sustainable Solutions Private Limited”.

Previously, in July 2022, the alleged accused and his members had introduced a digital currency, which had a value of $0.0012. They then told people that the new value had increased to $0.010 after some time.

The group members were falsely encouraging people to invest in their coins by deceitfully inflating their worth. The police have also collected other significant papers and a high-end vehicle from the accused’s custody.

Increase in crypto scams in India

According to surveys conducted by local media, Indian investors are readily duped by cryptocurrency scammers. The majority of these scams occur on the Telegram messaging app.

The Indian audience is more influenced by a lack of rules, inexperienced new investors, and a lack of knowledge about digital media. Online scammers find it simpler to con the masses of Indians when they see that everything and everyone may be believed.

A Delhi-based Indian engineer lost $15,000 on Telegram not so long ago.

Indian government tightens regulations to curb crypto scams

The Indian government has started imposing stricter laws to curb the sheer number of crypto scams taking place in the country.

Previously the Financial Intelligence Unit (FIU) had sent a show cause notice to nine offshore cryptocurrency exchanges. The FIU sent a the stating that the exchanges were “illegally operating” and had violated India’s anti-money laundering laws.

The government has also included digital assets under its watch list making money laundering provisions applicable to India’s cryptocurrency markets as well.