Crypto Investment Scam: Investors Lose Rs 14 Crore In Fake Crypto Scheme

Crypto scams have become common these days with fraudsters luring people through fake investment platforms that promise high and steady returns. Several such cases involve promises of guaranteed returns, whereas investors end up being unable to withdraw their money once they invest.

Fake cryptocurrency investment scams usually involve fraudulent platforms that mimic real trading systems and show fake profits to lure investors. A similar case has now surfaced where investors have alleged they were promised steady returns through an online scheme before being unable to access their funds.

Victims Lured Via Online promotions, Webinars And Referrals

A case has been reported involving allegations from 27 people that they were duped of nearly Rs 14 crore through an online investment scheme promising steady returns using claims of advanced trading technology.

The victims largely came from middle-income backgrounds and had limited understanding of forex trading, cryptocurrency markets, and digital investment platforms. Many said they invested their savings, whereas some also took loans after being assured of fixed monthly returns. The scheme was reportedly promoted through webinars, seminars, social media campaigns, WhatsApp groups, online meetings and personal referrals. Individuals were invited to presentations describing it as an advanced trading system linked to global forex and cryptocurrency markets.

Withdrawals Halted After Initial Gains Displayed

Some investors said they initially saw profits on the platform before withdrawals were eventually blocked. Another complainant said he invested Rs 21.90 lakh, after which the system stopped functioning and access to funds was denied. Another woman said she invested around Rs 8.50 lakh, including borrowed money, after being assured of regular returns, but later found withdrawals were not possible.

According to a report by the Times of India, investors were shown digital dashboards displaying rising balances and notional profits, which created the impression of genuine trading activity and encouraged further investments.

Payments were routed through bank accounts, digital wallets and cryptocurrency transfers. Several investors were also encouraged to reinvest and bring in friends and relatives, expanding the network further.

In multiple cases, investors were encouraged to convert balances into newly launched cryptocurrency tokens promoted as high-value assets. Withdrawals were later stopped, while dashboards continued to display notional profits. Based on the complaints, Delhi Police’s Economic Offences Wing has registered a case and begun investigating the money trail, the role of promoters and the functioning of the platforms involved.

Investors should remain cautious while dealing with online platforms that promise assured or unusually high returns. It is important to check and verify such investment schemes before putting in money, as cases of online fraud like this are still being reported frequently.