In a major crackdown, Indian police have arrested a Kolkata native for allegedly running a crypto scam worth over $180,000 (₹1.5 crore), as first reported by Chain Retrieval. The accused reportedly deceived dozens of investors by promising huge returns through fake cryptocurrency investments.
The Cyber Crime Unit of West Bengal Police launched an investigation after receiving multiple complaints from victims who claimed they had been misled into investing in what turned out to be a non-existent crypto venture. The scam involved convincing people to send funds with the promise of doubling or tripling their investments in a short time.
Using platforms like WhatsApp, Telegram, and Instagram, the accused created a false image of being a successful crypto trader. He shared screenshots of fake profits, fake portfolio screenshots, and ran ads offering “guaranteed returns” through a trading bot and new blockchain tokens.
Initial estimates suggest at least 20 individuals from Kolkata and nearby cities fell for the scheme. Most transferred funds to the scammer’s bank accounts or crypto wallets believing they were entering a high-yield digital asset platform.
When victims failed to receive their promised returns and could no longer reach the accused, they filed complaints, triggering the investigation.
Scammer Used Fake Documents, Trading Apps to Hide Trail
During the arrest, police seized laptops, mobile phones, multiple fake identity documents, and transaction logs. The suspect had used a combination of peer-to-peer exchanges and crypto mixing services to cover his digital footprints.
According to police, the man acted alone but may have had online collaborators. Authorities are examining his chat history and transaction records to identify others possibly involved.
Officials warn that this is not an isolated case. With crypto gaining popularity across India, scams like these are on the rise. Police have advised people to verify credentials, avoid “guaranteed returns,” and always check if a project is listed on reputed platforms.
Law enforcement agencies are also working with Indian crypto exchanges to improve fraud detection and reporting systems. However, until regulatory frameworks are strengthened, investors are being urged to do their own due diligence.
This case highlights how quickly scammers adapt to new technologies and how vulnerable inexperienced investors can be. While the crypto market offers genuine opportunities, it also attracts bad actors looking to exploit hype and lack of regulation.
Investigations are ongoing, and authorities say more arrests could follow soon.