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A 54-year-old building materials trader in Ahmedabad lost Rs 31 lakh ($52,000) to fraudsters who created a fake cryptocurrency platform mimicking the legitimate exchange CoinEx.
The victim, who was contacted through Facebook in April, made multiple transfers between April 24 and May 8 before discovering the platform was a sophisticated clone, according to a complaint filed with Ahmedabad’s cybercrime unit. Police have registered a case under the Bharatiya Nyaya Sanhita for criminal conspiracy and cheating.
The crypto investment scam began innocently enough when the trader accepted a friend request from “Thakur” on Facebook in early April. The two began chatting frequently and eventually moved their conversation to WhatsApp, where the fraudulent investment pitch began.
“She told me I could earn a 10% profit on my investment and helped me open an account on their website,” the trader explained in his police statement.
The platform he was introduced to was cleverly designed to mimic the reputable trading exchange CoinEx, a move that convinced him the scheme was legitimate.
To build trust, the scammer even sent him a small profit of Rs. 9,900 ($112), which appeared in his account as a successful trade return — a psychological tactic that has become common in many crypto investment scams.
Encouraged by the initial profit, the victim made several larger transfers totaling Rs. 31 lakh between April 24 and May 8 to multiple accounts provided by the fraudsters.
The crypto investment scam escalated when the trader attempted to withdraw his supposed profits. Instead of processing his request, the platform demanded additional investments before releasing any funds. After several failed withdrawal attempts, the trader began to suspect foul play and checked online reviews of the platform.
His fears were confirmed when he discovered that the website was a cloned version of the official CoinEx platform — complete with fake customer support and falsified balances.
Realizing he had fallen victim to a crypto investment scam, he promptly contacted the cybercrime helpline and was advised to file an official First Information Report (FIR).
The Ahmedabad Cybercrime Police have registered the case under sections of the Bharatiya Nyaya Sanhita (BNS) for criminal conspiracy, cheating, and breach of trust, as well as provisions under the Information Technology Act. Officials confirmed they are tracing the accused through the bank accounts used in the transactions.
A senior cybercrime official, Inspector Rajesh Parmar, commented:
“Crypto investment scams are becoming alarmingly common in India. Fraudsters exploit both the excitement around digital assets and the lack of investor awareness. We are intensifying our monitoring of such online frauds.”
The officer also urged citizens to verify all investment opportunities and confirm whether platforms are registered with recognized exchanges before transferring funds.
Experts believe the rise in crypto investment scams across India stems from a combination of weak regulatory oversight and low financial literacy. Fraudsters take advantage of this gap, preying on ordinary citizens with promises of quick profits and fake endorsements.
Rachit Chawla, CEO of Finway Capital, told CNBC-TV18:
“The absence of strict crypto regulations in India allows scammers to operate freely. Until proper frameworks are in place, investors will remain vulnerable to such fraudulent schemes.”
Cryptocurrency-related fraud reports increased by over 300% in the past two years, according to data from the Indian Cyber Crime Coordination Centre (I4C), with millions lost to fake trading platforms, cloned websites, and Ponzi-style crypto ventures.
The crypto investment scam that cost an Indian trader $52,000 serves as a grim reminder for investors to stay vigilant. Authorities continue to urge citizens to conduct due diligence, avoid unverified online investment offers, and report suspicious activity to the National Cybercrime Helpline (1930).
As India grapples with the balance between crypto innovation and regulation, one thing remains clear — until stronger protective measures are in place, crypto investment scams will continue to claim unsuspecting victims across the nation.
