Indian Authorities Crack Down on Large-Scale Crypto Scam

Indian law enforcement has arrested three individuals in connection with a significant crypto fraud that deceived over 2,000 victims with promises of lucrative returns. The RSN Crypto scam, operating in the northeastern Indian state of Assam, duped investors with misleading profit guarantees and a bogus online platform.

Scam Details

The scammers advertised the RSN crypto token as a promising investment that would offer a 2% daily return. However, the investigation revealed that the investments accrued were quickly converted into Tether-issued stablecoin USDT using crypto exchanges like Binance. The suspects allegedly amassed between inr 10-20 crore ($1.14-2.29 million) while the scheme was active.

Investigation and Arrests

The Indian Cyber Crime Coordination Centre (I4C) was brought in to track the operation. Investigators found that the website was hosted on an Amazon server and had alleged ties to entities in China. Police have arrested three suspects who admitted to manipulating crypto values and coercing victims into investing. Another key suspect, believed to be the head of the operation, remains at large.

This incident is not an isolated case, as Chinese scammers have increasingly targeted Indian investors through fraudulent crypto projects, exploiting the rising interest in digital assets. Many of these schemes follow a familiar pattern, including the use of stablecoins like USDT for money laundering.

Illicit Crypto Activity in India

Illicit crypto activity in India has surged alongside the country’s growing appetite for digital assets. With crypto trading volumes jumping to nearly $2 billion in late 2024, many small-city investors are reportedly turning to crypto in search of new income streams. According to one expert, the crypto market in India is projected to grow beyond $15 billion by 2035.

Some tips to avoid falling victim to similar scams:

  • Be cautious of investments that promise unusually high returns.
  • Research the project thoroughly and verify its legitimacy.
  • Be wary of projects that use high-pressure sales tactics.
  • Never invest more than you can afford to lose.

Stay informed about the latest developments in the crypto market and learn how to protect yourself from scams. Follow Global Crypto News for more updates and insights.

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