Indian police recover $3,000 for victims of crypto investment fraud

Indian police recovered about $3,000 and promoted refunds to victims who fell into fake crypto investment scams online. The refund was facilitated by CyberAbad Police’s Cybercrime unit, the first time that digital assets lost in a fraud case have been recovered.

The funds were recovered after legal intervention and international cooperation, according to the report. Indian police were able to track, freeze, recover and refund the victim in this case. The report states that the incident was registered with the police on February 2, 2024, and the victims immediately warned the police that they had been fraudulent.

Indian police refund digital assets stolen by fraudsters

After the Indian police received a complaint, they began an investigation following the digital trail of the deal. The investigation revealed that the victim was invited to invest USD 24,275, which is equivalent to Rs. 20.39 lakh to online crypto investment schemes. Like all schemes, the con man promised that he would come back for all the investments he made. Police said payments were made to several wallets.

Police said the offenders stole the victims under the guise of entering a transaction contract and promised a high return on their investment. After following the digital trail of transactions, Indian police discovered that some of the funds had already been moved to a wallet that is tied to an international cryptocurrency exchange headquartered in the Seychelles. Police have issued a formal notice to the exchange, requesting that they know the details of their customers (KYC) and their wallet.

Police noted that the exchange was a major help in their investigation, compliing with their notice and revealing the identity of the wallet holder. The exchange also confirmed the available balance of 0.03979 BTC worth around $3,746 or Rs. 3.22 lakh. Using the information, Indian police sought an order to freeze the debt from the court, which the court officially granted.

After all relevant documents and details of the transaction flow were filed, the court instructed the exchange to begin reimbursing the wallet for the frozen assets. Then it costs around 3,125.42 USDT, equivalent to about Rs. Rs 2.68 lakh has been returned to the victims.

Cybercrime police warn of an increase in criminal activity related to digital assets

Following the incident, Indian police issued an advisory notice regarding the rise in criminal activity related to domestic digital assets. Police stressed that the fraudsters have introduced activities in other parts of the globe, but residents should be cautious when relating to strangers they meet online. They warned that the public should refrain from sharing sensitive information with strangers.

Police have also warned of an increase in the scope of online investment and trading activities. They said criminals are now entering the space, disguising their intentions and scaming unsuspecting users as more people are turning to codes to make money.

These offenders use platforms like WhatsApp, Telegram and Facebook to target potential victims. Some people go until they become friends with them for several months before introducing their investments. In this way, they acquire and betray that trust by fraudulently deceiving them.

Additionally, residents are warned to be aware of the types of apps they install on their phones. Police said they were going to the point where criminals were cloned into their applications, injecting spyware that would help steal digital assets. They said that in most cases, scammers present these applications to people as harmless investment apps and steal digital assets owned by users.