Indian police are currently investigating the “Datameer” crypto trading app, which has allegedly defrauded at least 700 locals out of INR 10 million. The scheme promised returns of up to 50% to unsuspecting investors, who were misled into believing their funds were being invested in cryptocurrencies.

Once the investors transferred their money through the fraudulent app, the platform quickly shut down, and the scammers vanished. During its active period, the scam successfully extracted over INR 10 million (approximately $119,000) from investors.

India has experienced a surge in crypto demand despite a lack of robust crypto regulations and a stringent taxation regime. The country has nonetheless managed to top Chainalysis’ 2024 Global Crypto Adoption Index. However, this increasing interest in cryptocurrencies has also created opportunities for scammers exploiting the hype.

The Datameer app, which reportedly emerged in April 2024 and operated for five months, attracted both small and large investments. Superintendent of Police and Cyber Wing head, Pankaj Kumar Rasgania, noted,

“The scammers lured gullible individuals through social media, encouraging them to invest in a scheme with promises of huge returns in a short period of time.”

Preliminary investigations indicate that the perpetrators behind the app are spread across the country, with some evidence suggesting connections in Hong Kong. Authorities are currently coordinating with cyber wing experts from police forces nationwide, and more information will be disclosed as the investigation progresses.

Such scams have raised concerns due to their potential international links, particularly to regions in China. Similar connections have surfaced in other cases investigated by Indian authorities. In March, the Enforcement Directorate (ED) filed a charge sheet against 299 entities, including individuals of Chinese origin, under anti-money laundering laws. These entities were linked to a mobile app called “HPZ Token,” which allegedly defrauded investors with promises of high returns from cryptocurrency mining.

In another incident, crypto scammers tricked a doctor in India into transferring over $35,000 in a drugs-in-parcel scam. Authorities found that the stolen funds were funneled through multiple bank accounts, converted to cryptocurrencies, and then transferred to accounts in China and Taiwan.

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