Indian law enforcement has arrested four individuals accused of running a fraudulent cryptocurrency trading platform that defrauded victims of over $90,000.
Local media reports indicate that the scammers posed as representatives of a fake platform named GBE Crypto Trading Company, likely chosen to create a false connection with the legitimate Cyprus-based brokerage firm GBE Brokers. The scheme was executed through social media channels like WhatsApp and Telegram, where the culprits promoted a counterfeit trading app. To evade detection, they used virtual phone numbers and VPN services.
The Cyber Police Station in Balangir, Odissa, uncovered domain registrations used to impersonate legitimate trading platforms, though it remains unclear if the scammers directly impersonated GBE Brokers. Through these methods, the criminals reportedly amassed INR 7,600,000 (approximately $90,604).
Rishikesh Khilari, the Superintendent of Balangir Police, stated that over 60 bank accounts linked to the scam have been frozen, with INR 8.5 million (around $101,334) seized so far. Earlier in January 2024, the Balangir cyber police shut down another crypto scam involving a fake cryptocurrency called Dykan Coin, where scammers operated a phony exchange named DYFINEX.
India continues to be a hotspot for cryptocurrency scams due to weak regulations and low public awareness of digital currencies. Fraudulent schemes promoting fake cryptocurrencies, trading platforms, and dubious investments frequently target retail investors. One of the largest scams of 2024 involved the E-nugget scheme, which defrauded investors of roughly $10.7 million. Another Ponzi scheme, exposed in August, led to losses exceeding $890,000 with a fake cryptocurrency named Emollient Coin.
Regulators in India are reportedly drafting a discussion paper expected to lay the groundwork for future crypto legislation, with plans to publish it later this year.
