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Indian Police Probes ₹1.61 Crore Cryptocurrency Investment Fraud

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Lack of awareness about cryptocurrency investments enabled the accused to deceive multiple individuals, resulting in significant financial losses.
The scam exploited trust by using a bank account belonging to an associate, making it difficult for victims to suspect fraudulent activity.
Inadequate regulation and oversight of digital assets facilitated the scam, contributing to a growing wave of cryptocurrency-related fraud cases in India.

A new cryptocurrency scam in Maharashtra has brought attention to the increasing difficulty Indian authorities are having with digital asset fraud.

Police in Thane have filed a case against a 44-year-old man for allegedly defrauding seven investors of ₹1.61 crore. He’s accused of promising them high profits through investments in cryptocurrency. The complaint was made on May 25, 2026, and authorities say the fraud occurred between December 2023 and June 2025.

The mechanics of the Thane scam 

Police say the suspect tricked several people into investing in a cryptocurrency scheme they believed would be profitable.

A 45-year-old man reported that the accused lured him and six other people with promises of high investment returns, then collected money from them over time. Investigators say the group of victims transferred a total of about ₹1.61 crore as part of this scheme.

According to police, the suspect told investors to send money to a bank account owned by a woman whose husband was an employee in his office. Unfortunately, the investors never received the profits they were promised.

According to officials, the investors didn’t receive the returns they were promised and later discovered they had been scammed.

Police are investigating where money connected to the case went and if anyone else participated in the suspected scheme.

Part of a larger wave of crypto fraud cases

The recent case involving Thane joins a rising number of cryptocurrency scams currently under investigation throughout India.

Authorities in Gujarat recently arrested a tenth suspect in a case involving the possible use of cryptocurrency to fund terrorism. Investigators believe the digital currency was used to hide money transfers and move funds across international borders related to illegal operations.

This year, authorities have been actively investigating several significant cases of cryptocurrency and cyber fraud. For example, in March, the Enforcement Directorate (ED) froze around 500 crore rupees worth of assets connected to the HPZ Token scam. This scam was a large investment scheme that falsely promised high profits through Bitcoin mining. Investigators believe the scheme took over 2,200 crore rupees from investors and moved the money through many fake companies.

Earlier this year, the Enforcement Directorate arrested several people involved in a 640 crore rupee cyber fraud and money laundering scheme. The scheme used fake companies and cryptocurrency to hide the movement of money.

Enforcement agencies shift focus to crypto crimes

Indian authorities are seeing a growing number of cryptocurrency scams and are now recognizing this as a significant and new danger.

At a recent event celebrating its 70th anniversary, the Enforcement Directorate’s Director, Rahul Navin, stated that the agency is now prioritizing cases involving cryptocurrency fraud, funding of terrorism, cybercrime, and drug trafficking. He also reported that the ED filed 812 indictments and 155 additional charges in the last year, with a high conviction rate of 94%.

As part of my research, I’ve observed the agency significantly increasing its use of financial intelligence gathering, blockchain analysis, and investigations into money laundering – specifically under the Prevention of Money Laundering Act – to follow the flow of transactions involving cryptocurrencies. This allows us to better track and understand these kinds of financial activities.

The recent case in Thane is typical of many crypto scams. Fraudsters lure people in with promises of very high profits, then hide the money by sending it through other people’s accounts, making it harder to track.

Police are still urging investors to double-check any investment platform, be wary of promises of guaranteed returns, and thoroughly research anyone they’re considering sending money to.

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2026-05-30 13:57