Crypto Scam: India Cracks Down on Japan-Linked $700K Fraud, Arrests 5 Suspects

In a surprising event, Indian police arrested five suspects, including one woman, in connection with a $700,000 crypto scam. Reportedly, the accused defrauded a businessman using a Japan-duped crypto trading platform.

Notably, the Indian government’s latest action underscores the growing concern over crypto scams in the country and demonstrates the authority’s firm commitment to combating these fraudulent schemes.

Indian Police Arrest Five in a $700K Crypto Scam

According to local reports, the Indian police arrested five suspects in a crypto scam that stole $700,000 from a businessman. Posing as a prominent Japanese crypto exchange, the alleged group of five individuals, defrauded the man. As per reports, the suspects were taken into custody following an investigation by the cybercrime wing of Odisha’s Crime Branch.

Significantly, the massive scam involved a bogus trading app called ZAIF, which offered promising returns of up to 200% on crypto investments. It is noteworthy that ZAIF is originally a reputable Japanese crypto exchange that fell victim to a $60 million hack in 2022. However, in this case, it is unlikely that the Japanese exchange is connected to the scam.

Indian Crypto Scam: Hackers Defraud Businessman

Interestingly, the sophisticated Indian crypto scam unfolded when a woman contacted the businessman on Facebook impersonating a Hong Kong-based IBM software developer. Gaining trust over the man, she successfully succeeded in making him transfer over INR 6 crore (approximately $699,352) to various accounts controlled by the scammers in a month.

To build more trust, the fake app displayed profits on his account. Later, the scammers demanded an additional INR 89 lakh to unlock the funds when he tried to withdraw them. As he refused to pay the amount, they disappeared, leaving no clues behind.

However, the police were able to track down the suspects through digital evidence and banking records. A subsequent raid yielded incriminating materials, including phones, SIM cards, ID documents, and other evidence.

Recently, crypto exchange Deribit issued an alert against the growing number of crypto job scams. Posing as prominent crypto firms, scammers use to defraud crypto developers and job seekers.

Eight Arrested for $244K Crypto Fraud

This $700k crypto scam incident coincides with another major crypto and forex trading scam that resulted in a loss of INR 21 crore, equivalent to $244.3K. On Wednesday, Srinagar police arrested eight individuals allegedly involved in the crypto crime.

The suspected ran a fake crypto and forex trading platform and defrauded at least 5,000 investors, accumulating a total of 21 crore. The police revealed that the scammers lured traders into investing a minimum of $300 each through fake promises and guaranteed returns.

These developments come amid Bitcoin critic Peter Schiff’s controversial statement that crypto itself is a scam. Recently, Peter Schiff stated that Donald Trump’s Bitcoin reserve is misleading Americans into risky investments.