News

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

Indian police arrest five suspects connected to a $700k crypto scam that defrauded a businessman posing as a prominent Japanese firm.
Published by
Crypto Scam: India Cracks Down on Japan-Linked $700K Fraud, Arrests 5 Suspects

Highlights

  • Indian police arrests five suspects in connection with a $700k crypto scam.
  • The scammers defrauded a businessman posing as a prominent Japanese crypto firm.
  • Srinagar police arrested eight individuals alleged of orchestrating a $244k crypto scam.

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.

Advertisement

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.

Advertisement

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.

Advertisement

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.

Advertisement
Share
Nynu V Jamal

Nynu V Jamal is a Senior Journalist at CoinGape. She boasts more than 3 years of experience in content writing, with expertise in crypto and blockchain. She has contributed to platforms like CoinEdition and CryptoTale, demonstrating her proficiency in navigating the dynamic crypto landscape. Beyond her journalistic pursuits, Nynu is a literary enthusiast, having served as an Assistant Professor of English Language and Literature. She is a Master's degree holder in English Literature and a UGC NET qualifier. Her academic background has enabled her to publish research papers on literature, while also nurturing her creative side as a published poet. Her creative side extends to music, crafts, and art, which she actively explores. Her unique blend of analytical and creative skills allows her to craft engaging stories that captivate audiences. Stay updated with Nynu on LinkedIn

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • Altcoin News

XRP News: Key Ripple Whale Indicator Turns Bullish After 4 Months, Price Rally Ahead?

In a major XRP news today, a key whale indicator turns bullish for Ripple's native…

October 30, 2025
  • News

Pi Network Dedicates 350,000 Active Nodes for AI With OpenMind Partnership

In the latest development, the Pi Network Ventures announced its investment in artificial intelligence (AI)…

October 30, 2025
  • News

Breaking: Trump Cuts Tariffs as US-China Reaches 1-Year Trade Deal, Bitcoin Rebounds

US President Donald Trump reduced tariffs on China after a meeting with President Xi Jinping,…

October 30, 2025
  • News

Binance Responds to Charges of Supporting Trump-Family Crypto USD1 and WLFI Soon After CZ Pardon

US lawmakers have started accusing crypto exchange Binance of supporting Trump family projects like World…

October 30, 2025
  • Bitcoin News

SpaceX Makes Third Huge Bitcoin Transfer in 10 Days, Is Elon Musk Planning Something Big?

Elon Musk’s space exploration company, SpaceX, moved another 281 Bitcoin on Thursday, according to blockchain…

October 30, 2025
  • News

Crypto Market Tumbles as Jerome Powell Says December Rate Cut ‘Far From Certain’

The crypto market turned sharply lower on Tuesday after Federal Reserve Chair Jerome Powell said…

October 30, 2025