Law enforcement in India has arrested four individuals believed to be operating a fake cryptocurrency trading platform that duped victims of over $90,000.

According to local media, the scammers targeted investors by claiming to be representatives of a fake crypto trading platform called GBE Crypto Trading Company. The name was likely chosen to mimic the Cyprus-based online brokerage firm GBE Brokers.

The scam was conducted through several social media platforms, such as WhatsApp and Telegram, where the perpetrators circulated a fake trading application. To cover their tracks, the scammers reportedly used virtual phone numbers and VPN services.

Investigations by the Cyber Police Station at Balangir, Odissa, also uncovered domains registered to facilitate the scheme and impersonate legitimate trading platforms. However, it remains unconfirmed whether the scammers were impersonating GBE Brokers.

Using these tactics, the scammers reportedly managed to amass INR 7,600,000 (roughly $90,604). Rishikesh Khilari, the Superintendent of Balangir Police, noted that over 60 bank accounts tied to the scam have been frozen, with a total of INR 85 lakhs (approximately $101,334) seized at the time of reporting.

Crypto Scams in India

In January 2024, another crypto scam involving a fake cryptocurrency dubbed Dykan coin was shut down by the Balangir cyber police. Like the GBE Crypto Trading Company, the scammers developed a fake crypto exchange called DYFINEX and offered trading and staking services to lure investors.

India remains a prime target for cryptocurrency scammers due to weak regulations and a general lack of awareness about digital currencies. As a result, scams that promote fake cryptocurrencies, trading platforms, and shady investment schemes often target retail investors.

One of the biggest incidents of 2024 involved the crackdown on the E-nugget scam, a fraudulent investment scheme that raked in roughly $10.7 million worth of cryptocurrencies. Another Ponzi scheme, uncovered in August, led to losses of over $890K disguised as a fake cryptocurrency called Emollient Coin.

Regulatory Efforts

Regulators in India are reportedly working on a discussion paper expected to be published later this year. The paper is anticipated to lay the foundation for legislation regarding the crypto sector.

For more updates on cryptocurrency news and investment tips, stay tuned to Global Crypto News.

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