Indian Authorities Nab Crypto Scammers in $700K Fraud Case
Indian law enforcement has apprehended five individuals suspected of defrauding a businessman of around $700,000 through a fraudulent crypto trading platform.
The suspects, including a woman, were arrested by Odisha’s cybercrime unit. They allegedly ran a scam using a fake app named ZAIF, promising up to 200% returns on crypto investments. The app claimed to be linked to Japan, but it was likely unconnected to the real ZAIF, a Japanese exchange that faced a $60 million hack in 2022.
The scam began when the victim, an Indian businessman, was approached on Facebook by a woman posing as a Hong Kong-based IBM developer. She convinced him to invest in crypto via the fake ZAIF. Over a month, he transferred over INR 6 crore to the scammers.
Initially, the victim saw fake profits, building his trust. When he tried to withdraw, the platform demanded an extra INR 89 lakh, a classic advance fee fraud tactic.After he refused, the scammers disappeared.
Police traced the suspects using digital and banking records, seizing phones, SIM cards, and ids. India remains a target for crypto scams due to its regulatory gray area. Earlier, another scam involving a fake token called RSN resulted in losses between $1.14 and $2.29 million.
