India Becoming Notorious for Cryptocurrency Crimes and Scams

Cryptocurrency Crimes Run Rampant in India

The cryptocurrency market seems to be getting closer to mass adoption. Unfortunately, however, crypto-related crimes and scams are on the rise as well. Notably, Indian Police Service (IPS) officer Jagdish Patel has been arrested due to suspected involvement in a Bitcoin extortion case. Patel is currently on police remand and was taken into custody by the state CID crime unit.

A high-ranking CID officer issued the following statement in regards to this incident:

“As majority of the plot is clear on the basis of investigation so far, the attempt is made to establish the evidences. Thus, the rule of the accused is crucial. From the search at residences of Patel’s confidante in Amreli, we found two briefcases from which digital and paper evidences including bank documents were recovered. Scrutiny of the documents is on as we are trying to prove the money trail from Patel to other accused in the case.”

Disturbingly, it appears that this “money trail” is beginning to uncover other criminal activity. Surat, where this incident has been reported to have taken place, is a city located in the Indian state of Gujrat. The Times of India notes that Surat has been quite a popular place for cryptocurrency transactions. Also, the report mentions that large sums of black money has been “converted into digital currency.”  

Many More Cryptocurrency Crimes in India

The incident mentioned above is not the only recent cryptocurrency related crime that has taken place in India. In fact, a Chennai resident became the target of a crypto scam in which she lost INR (Indian Rupees) 17 Lakhs, which is roughly the equivalent of $26,000. According to the victim, Indirani, she was contacted by P. Madesh, a representative of Wow Digital Solutions. She was then lured into “investing” into a “Wowcoins” cryptocurrency. 

The company directors told her that Wowcoins would appreciate in value nearly 1000 times their present value in only 3 years. This, in itself, should be a red flag for anyone looking to invest their hard earned money. These returns are simply not realistic and are usually “promised” by malicious scammers. However, presumably due to lack of research and careful consideration, Indirani chose to part with her cash. 

Another red flag was that the company directors said Wowcoins would “beat” Bitcoin. This claim by anyone should not be taken seriously, as most sensible crypto watchers would know. After handing over a total of around $26,000, the woman is now unable to contact the company. She reports that their office has been closed since January. Also, she says that “e-accounts” that were supposedly “set up” for their clients, or shall I say victims, were all fake.  

Cryptocurrency Crimes Everywhere

It must be noted that the most ruthless criminals do not discriminate who they target. Their main goal, of course, is to do whatever it takes to get innocent and unsuspecting people to part with their hard earned money. At Crypto Core Media, we also personally came across a possible scam where a LinkedIn user was attempting to “sell” Bitcoins worth nearly $500 million.