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A 42-year-old land dealer in Bhosari, Pune, lost ₹1.23 crore in a crypto investment scam after two men showed him fabricated profits through a mobile app and allegedly threatened him when he tried to withdraw his money, police said.
The alleged scheme began in May 2024 after an acquaintance introduced the complainant to another man who claimed to be involved in cryptocurrency trading and capable of generating unusually high returns. Police are now examining the financial transactions, bank accounts, phone numbers and digital platforms connected to the alleged crypto investment scam.
The allegations have not been proven in court.
According to the complaint, the alleged crypto investment scam started when the complainant’s existing relationship with one of the suspects was used to establish credibility.
The acquaintance reportedly introduced him to the second suspect, describing him as an experienced cryptocurrency trader. The two men allegedly presented themselves as business partners and claimed they had helped other investors generate substantial returns.
The land dealer initially transferred ₹19.70 lakh to the suspects. Their decision to return ₹10.40 lakh allegedly helped reinforce his confidence in the arrangement.
The suspects reportedly told him that the remaining ₹9.29 lakh had been invested in cryptocurrency and was generating profits.
That initial transaction allegedly became the foundation for much larger transfers.
Over time, the complainant transferred a total of ₹1.23 crore into multiple bank accounts provided by the suspects. To make the investment appear legitimate, they allegedly showed him cryptocurrency holdings and returns through a mobile application.
The application reportedly displayed rapidly increasing balances and profits, giving the impression that the complainant’s investments were performing exceptionally well.
This alleged pattern establishing trust with an initial transaction before encouraging substantially larger investments is a common feature highlighted in warnings about investment fraud.
The alleged crypto investment scam escalated when the application began displaying extraordinary returns.
According to the complaint, the suspects told the land dealer that his investment had generated profits exceeding ₹100 crore. Such figures allegedly strengthened his belief that his money was genuinely invested and producing substantial returns.
The situation changed when he began requesting his original investment and the profits displayed on the application.
Instead of processing his withdrawal, the suspects allegedly cited a series of problems, including banking difficulties, payment delays and technical issues associated with cryptocurrency.
The repeated explanations allegedly prevented the complainant from accessing his money for an extended period.
Eventually, he discussed the investment with a friend who works as a software engineer. The friend reportedly examined the mobile application and the investment information displayed on it.
That examination allegedly revealed that the cryptocurrency holdings and profits shown on the platform were fictitious.
The discovery prompted the complainant to confront one of the suspects, leading to another alleged development in the crypto investment scam.
When the complainant confronted one of the suspects about the missing money, the suspect allegedly threatened him and claimed to have connections with the criminal underworld.
According to the complaint, the suspect warned that the land dealer could be killed if he continued pursuing the matter.
The alleged threat prompted the complainant to approach Bhosari police and report the entire sequence of events.
Police have registered a case against the two suspects under Sections 318 and 351 of the Bharatiya Nyaya Sanhita. Investigators are examining the accounts into which the complainant transferred money, along with the transaction trail and phone numbers allegedly used by the suspects.
Authorities are also investigating the digital platforms connected to the alleged crypto investment scam and whether the suspects used the same method to target other investors.
The investigation could help determine whether the two accused acted alone or whether other people and bank accounts were involved.
Cybercrime expert and former IPS officer Prof. Triveni Singh said fraudsters can initially use small transactions to establish credibility before encouraging victims to commit larger sums.
According to Singh, returning part of an initial investment can convince victims that the people and platform involved are legitimate. Once that trust has been established, fraudsters can encourage substantially larger transfers.
Singh also warned about the psychological effect of fake applications that show rapidly increasing profits.
He advised investors to independently verify the company, application, bank accounts and investment platform before transferring funds, particularly when an opportunity promises unusually high returns.
The warning is particularly relevant to the alleged crypto investment scam in Bhosari, where the complainant was reportedly shown increasingly large profits through an application before discovering that the displayed assets were allegedly fictitious.
Another common feature of such schemes is the demand for additional payments when victims attempt to withdraw their money.
Fraudsters may allegedly describe these payments as taxes, processing fees, banking charges or technical costs. The victim is then persuaded to send more money in the hope of unlocking an increasingly valuable account balance.
Experts warn that investors should regard unusually high and consistent returns as a significant warning sign. Requests for additional payments before a withdrawal can also indicate that an investment platform is fraudulent.
In the Bhosari case, investigators are now attempting to establish the full financial trail behind the alleged crypto investment scam, including where the ₹1.23 crore transferred by the complainant ultimately went.
The investigation will also determine whether other investors were allegedly targeted through the same scheme.
Cybercrime specialists advise victims to act quickly after detecting suspicious transactions. The report urges victims to immediately contact their banks and India’s 1930 cybercrime helpline.
Early reporting can improve the chances of banks and law-enforcement authorities placing holds on suspicious transactions and tracing the movement of funds.
For the Bhosari complainant, the investigation now centres on recovering the allegedly lost money and determining who was responsible for the crypto investment scam.
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