Crypto crime in India on the rise: A look at major scams in recent years

cnbctv18.com:

Despite market fluctuations and an uncertain legal status, cryptocurrencies continue to fascinate Indian investors. The number of crypto users and traders keeps increasing, and worryingly, many seem to be unmindful of the associated risks .

These are not limited to market risks; they extend to extreme cyber frauds, involving highly skilled scammers.In 2021 alone, Indian users visited crypto scam websites over 9.6 million times. According to Chainalysis, a software platform that tracks the criminal activities linked to cryptocurrency transactions, the most visited scam websites in India are coinpayu.com, adbtc.top, hackertyper.net, dualmine.com and coingain.app among others.

These five websites alone received about 4.6 million visits from Indian users.Also read: Maha cop among 8 arrested for kidnapping businessman for crypto worth Rs 300 croreBesides scam websites, Indian crypto enthusiasts have been duped by conmen and hackers over the years.In December last year, the Finance Ministry, in a reply to the Parliament, said at least eight cases of cryptocurrency-related frauds are already under investigation by the ED.Also read: Crypto Scams: What the industry is doing to educate users, prevent fraudHere are some of the top cryptocurrency frauds that happened in India:Rs 2000-crore GainBitcoin Ponzi scheme scamIn 2018, Amit Bhardwaj, a businessman, cheated over 8,000 people of a total amount of over Rs 2,000 crore. He orchestrated a multi-level marketing scam and lured investors to give him Bitcoins in exchange for higher returns.

He introduced a contract of 18 months offering a 10 percent return. Amit Bhardwaj defaulted on his promise, did not give returns and later fled the country.