Law enforcement in India has initiated an investigation into a crypto investment scam that deceived locals out of millions by promising fixed monthly returns of 10%.

Investigation into Cryptocurrency Scam

A report from the Deccan Chronicle on November 4 detailed that police officials are probing a cryptocurrency scam that targeted 320 people across the state of Andhra Pradesh. Allegedly orchestrated by an individual named Ramanjaneyulu, the scheme has reportedly caused losses amounting to at least INR 23 crores (approximately $2.73 million), with some estimates suggesting the total sum could be higher.

Modus Operandi of the Scam

Ramanjaneyulu lured investors by promising fixed monthly returns of 10% for every one-lakh-rupee investment made under the scheme. To add credibility to the scam, he advertised the use of well-known exchanges like Binance and OKX.

Active since 2021, the scam defrauded a broad spectrum of individuals, including local businessmen, politicians, government employees, traders, and other officials. Some victims reportedly took out loans to invest in the scheme, only to suffer substantial losses.

Ongoing Investigation

Local police are currently investigating the case following several complaints filed over the past month. India remains a hotspot for scammers, driven by the grassroots-level adoption of cryptocurrencies among residents. The country currently leads in Chainalysis’ global crypto adoption index.

However, this widespread adoption has also attracted scammers. Between October 2023 and March 2024, Indian citizens reportedly lost approximately INR 500 crores (about $60 million) to crypto-related scams.

Recent Crypto Scams in India

Last month, Indian authorities launched an investigation into a crypto trading app, alleged to be an investment scam, promising returns of up to 50%. At least 700 victims lost over $119,000 after the fake trading platform shut down without notice. The operators of the scheme reportedly had connections to Hong Kong.

In August, another fake crypto trading platform enabling investment scams was dismantled after police arrested four of the platform’s operators.

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