Indian Police Shut Down $90K Fake Crypto Trading Platform

Indian Police Shut Down Fake Crypto Trading Platform, Seizing Over $90K

Indian authorities have made significant strides in combating cryptocurrency fraud as the Indian Police successfully shut down a fake crypto trading platform, GBE Crypto Trading Company, which scammed investors out of INR 7,600,000 (approximately $90,604). The scam was orchestrated by individuals falsely claiming to represent the legitimate Cyprus-based brokerage firm, GBE Brokers, to deceive unsuspecting investors.

The Indian crypto scam 2024 news reports that these fraudsters used social media platforms, including WhatsApp and Telegram, to promote a fake trading application linked to the GBE Crypto Trading Company. The perpetrators utilised virtual phone numbers and VPN services to mask their identities to avoid detection. The Balangir Police crypto scam investigation also uncovered several domains registered to impersonate legitimate trading platforms, although it's unclear if GBE Brokers was directly impersonated.

Rishikesh Khilari, the Superintendent of Indian Police, revealed that over 60 bank accounts associated with the scam have been frozen, and a total of $101,334 has been seized. This operation is part of a broader effort by Indian authorities to crack down on fake cryptocurrency investment schemes.

This is not the first time the Cyber Police Station at Balangir has dealt with cryptocurrency scams. In January 2024, they dismantled another fraudulent operation involving a fake cryptocurrency called Dykan coin. The scammers behind Dykan coin created a fake crypto exchange, DYFINEX, offering trading and staking services to lure investors, much like the GBE Crypto Trading Company scam.

India has become a hotspot for cryptocurrency scams in 2024 due to weak regulations and limited public awareness about digital currencies. Fraudsters often target retail investors with fake crypto trading platforms and shady investment schemes. One of the biggest incidents of the year was the crackdown on the E-nugget scam, which defrauded victims of approximately $10.7 million in cryptocurrencies. Another Ponzi scheme involving a fake cryptocurrency called Emollient Coin led to losses exceeding $890K.

Recognising the need for stronger regulations, Indian authorities are reportedly working on a discussion paper that will address the growing issue of cryptocurrency scams. This paper, expected later this year, aims to lay the foundation for new legislation governing the crypto sector in India.