Indian police arrested for $180,000 from Kolkata crypto fraud

Indian police have arrested a Kolkata native for scamming an innocent trader of Rs. 1.5 crores (approximately $180,000). According to Bidhannagar police, the 26-year-old man from Ahmedabad has been arrested for roles in a crypto investment scam in 2023.

Defendant Harshik Mukeshbhai Patel has been arrested in Chandkeda, Gandhinagar district, Gujarat. According to the report, by court order, he is taken to Kolkata where he is remanded. The arrest was made in connection with a lawsuit registered with the Bidhannagar Cybercrime Police Station on September 15, 2023, based on a complaint filed by 34-year-old Aurobinda Maj, a resident of Kolkata.

Indian police suspected of role in crypto investment fraud

According to complaints filed by Maji, he was fooled by a fake cryptocurrency investment platform that promises massive profits. The platform provided users with wallets, deposited funds and saw investments grow rapidly. This is typical of most scammers, and promises high returns as a way for unsuspecting users to shake them up to make investments in fake platforms.

Indian police said the fraud carried out under the pretense of crypto transactions saw criminals steal funds from the platform using multiple bank accounts. The scammers were said to run a well-designed, professional online platform that looked like the interface to most legitimate crypto wallets and trading websites.

Traders were encouraged to invest in a variety of digital assets. This is a typical move for criminals to diversify their funds. In this way, if they lose money by trading assets, they can still be tied down by criminal groups through other investments in other digital assets. Reports show that fraudsters provide guaranteed benefits on investments, and those benefits range from 10% to 25% within a few days.

Investigators for the Indian police said detectives tracked down some of the amounts they stole from the victim. 2 lakhs (approximately $2,400) in the first IDFC bank account held by Patel. According to Indian police, the money was sent to the account via Layer 2 Stage and withdrawn via ATM shortly after the deposit was created.

During the arrest, Indian police seized a private clause that they believed was linked to financial transactions. “We believe Patel may be part of a broader network engaged in similar digital investment scams and continue our investigation to track down additional beneficiaries and accomplices,” said a senior officer on the Bidhannagar committee.

The crime rates associated with India’s digital assets have been marked in recent days. In a recent scam, a man lost about Rs. 1.67 crores (approximately $200,000) via WhatsApp. The victim led to a con man who pretended to be a potential bride on the marriage website. The scammer began talking to the victims on April 11, claiming that he worked for a Singapore-based crypto trading company.

The victim was originally said to have sent about $583 to invest in the platform, earning $100 from that single trade. This trade was enough to convince the victims to move to a large number of con artists in the hopes of making more profits. “After the initial transfer, the app showed an immediate profit of Rs 8,300. As they were invited to return, they continued to “invest” more money into the platform through multiple bank transfers and UPI payments,” the victim said.